The rural economy of North Wales is set to benefit from significant Growth Deal funding, as Ambition North Wales has approved the Business Justification Case for a £3.5m investment towards the development of Dairy Sheep Wales. Led by Grŵp Llandrillo Menai, the project will establish a dedicated sheep milk innovation and processing centre as part of the wider Glynllifon Rural Economy Hub.
With backing from the North Wales Growth Deal, £200k from Grŵp Llandrillo Menai, and a further £1m from Welsh Government, the project will deliver a state-of-the-art facility for sustainable sheep milking, product development, training, and enterprise support at the Glynllifon campus near Caernarfon. With rising global demand for sheep milk products, the project aims to place North Wales at the forefront of an emerging sector while addressing current gaps in infrastructure for knowledge transfer and commercialisation.
Dairy Sheep Wales is one of four key elements of the Glynllifon Rural Economy Hub project, part of a broader £19.2m investment supported by the Growth Deal. The project aims to unlock the economic potential of rural areas through innovation, sustainability, and diversification. Other key components include a Sustainable Dairy Development and a Knowledge Hub, with Agri-Tech playing a central role across the project.
Cllr. Mark Pritchard, Chair, of Ambition North Wales and Leader, Wrexham County Borough Council, said:
“Dairy Sheep Wales is a forward-looking investment. It supports the kind of rural innovation we need and has real potential to compete in global markets. It’s a strong example of how the Growth Deal can deliver both economic and environmental value."
Huw Irranca-Davies, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, said:
"This investment in Dairy Sheep Wales demonstrates our commitment to supporting rural communities and building a sustainable food system for the future. Welsh Government has been part of this vision from the outset and instrumental in getting this project to this point. By backing innovative projects like this £4.7 million centre, we're helping farmers diversify their operations, creating new opportunities for young people in rural Wales, and positioning the UK at the forefront of emerging agricultural markets.
“The sheep milk sector represents exactly the kind of forward-thinking approach we need to strengthen our rural economy whilst delivering on our net zero commitments. This facility will not only support 80 enterprises and create dozens of jobs, but will also help farmers adopt low-carbon practices that benefit both their businesses and the environment.
“Projects like Dairy Sheep Wales show how targeted investment through the Growth Deal can unlock the economic potential of our rural areas. By combining innovation, sustainability and skills development, we're building resilient rural communities that can compete globally whilst remaining rooted in their local heritage and landscape."
Wales Office Minister Anna McMorrin said:
“The Dairy Sheep Wales project is a great example of how the UK Government, through our investment in the North Wales Growth Deal, is supporting rural communities.
“This project will create jobs in an innovative and sustainable agricultural sector, where there is huge potential for growth. We want every part of Wales to be part of our economic growth mission and ensure there are opportunities for future generations to work wherever they choose.”
Gwenllian Roberts, Executive Director Commercial Development, Grŵp Llandrillo Menai, said:
“This project is about building something that has the potential to create lasting positive impact for rural Wales. By investing in sheep milk innovation, we’re helping farmers diversify, creating new opportunities for young people, and strengthening the local economy. Glynllifon is the right place to lead this work, bringing together expertise and community.”
With a centre of excellence at Glynllifon, the project will help diversify farm incomes, support the next generation of farmers, and strengthen the position of North Wales in a growing market for premium sheep milk products.
Each project within the North Wales Growth Deal is required to develop a Business Case, which forms part of a structured approval process. Approval of the Dairy Sheep Wales business case allows the project to proceed to the next stage to secure Growth Deal funding and prepare for delivery.