The Dairy Sheep Wales initiative was introduced at a high-level stakeholder round-table event, bringing together policymakers and funders to explore opportunities for developing a sustainable dairy sheep sector in Wales.
Grwp Llandrillo Menai welcomes the £4.7million investment, which will establish a dedicated sheep milk innovation and processing centre as part of the wider Glynllifon Rural Economy Hub.
Backed by £3.5m from the North Wales Growth Deal, which is jointly funded by the UK and Welsh Governments, a further £1m from Welsh Government and £200k from Grŵp Llandrillo Menai the project will deliver a state-of-the-art facility at the Glynllifon campus near Caernarfon. The centre will support sustainable sheep milking, product development, skills training, and enterprise development, helping to build a resilient and future-focused rural economy.
With global demand for sheep milk products continuing to rise, the project aims to position North Wales as a leader in this emerging sector, while addressing existing gaps in infrastructure for research, knowledge transfer, and commercialisation.
Dairy Sheep Wales is one of four key components of the Glynllifon Rural Economy Hub, part of a wider £19.2 million investment supported through the North Wales Growth Deal which is delivered by Ambition North Wales. The Hub is designed to unlock the economic potential of rural areas through innovation, sustainability, and diversification. Other elements include a Sustainable Dairy Development and a Knowledge Hub, with agri-tech playing a central role throughout the programme.
By creating 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 high-quality, premium sheep milk products. The sheep milk initiative alone aims to create 42 new jobs, collaborate with at least 80 businesses, provide 185 training opportunities and generate an additional GVA of £10-£20m.
Gwenllian Roberts, Executive Director of Commercial Development, Busnes@LlandrilloMenai, said:
“Dairy Sheep Wales marks a significant step forward for the rural economy of North Wales. This project is about more than infrastructure – it’s about creating new opportunities for farmers, supporting innovation, and building the skills and knowledge needed to develop a sustainable and competitive sheep milk sector. By bringing together education, research and industry at Glynllifon, we are laying the foundations for long-term growth, resilience and diversification across our rural communities.”
Cllr Julie Fallon, Lead Member for the Growth Deal’s Agri-food and Tourism programme, Ambition North Wales, said:
“The North Wales Growth Deal was established to support our key regional industries, such as agriculture. The Dairy Sheep Wales investment exemplifies this mission—positioning North Wales as a global leader in sustainable sheep milk production while creating high quality jobs across rural communities.”
Huw Irranca-Davies, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, said: “This is a once in a generation opportunity to think differently for our sheep farmers and keep farming families on the land by reinventing the sustainable future of farming in Wales.
"With climate conditions in Wales still favourable for sheep milk production, and demand growing as output elsewhere in Europe declines, the opportunity before us is clear.
"Wales is the first home nation to support the development of a dedicated dairy sheep sector. By working together across the supply chain, we can create a Welsh sheep dairy industry with a global reputation for excellence, sustainability and quality."
Wales Office Minister Anna McMorrin said:
“The Dairy Sheep Wales project, backed by the UK Government, will help deliver a sustainable future for the farming industry in north Wales by tapping into the growing global demand for sheep milk products.
“Working with our partners we are helping to grow the economy in north Wales by creating jobs and opportunities for local people.”
The North Wales Growth Deal is a £1 billion investment to the region’s economy, £240m of which is funded by the Welsh Government and UK Government.