The extension will make the company more creative, says Neil Burchell

The �3m scheme will treble production capacity and allow Rachel's Organic in Aberystwyth to target mainland Europe.

In 20 years, the company has gone from making its yoghurt in buckets on a farm to producing 10 million pots a year in a hi-tech factory.

First Minister Rhodri Morgan is opening the new development.

Founded by farmers Gareth and Rachel Rowlands, Rachel's Organic's success has reflected the surge in demand for organic food and drink over the last decade.

The product maintains its Welsh image and as a Welshman that's important to me Gareth Rowlands

As well as yoghurt, it also produces 4.5 million litres of Welsh milk every year and employs 100 staff.

Mr Rowlands, who sold the company to American firm Horizon Organic in 1999, but who still acts as a consultant, said: "The expansion is absolutely wonderful news.

"The company is able to continue where we left off and in the way we wanted it to.

"We're also pleased that the development is in Aberystwyth. The product therefore maintains its Welsh image and as a Welshman that's important to me."

Mr Rowlands said he and his wife identified the potential for organic products in the early 1980s.

"The belief in the organic market has grown steadily," he said.

Eleven new mixing vats - part of the new development at Rachel's Organic

Managing director Neil Burchell said the extension was vital the company's long-term plans.

"Working with the Welsh Development Agency and Food From Britain we intend to break into the market in continental Europe next year," he said.

"We already sell throughout the UK and Ireland. We have range of 50 different products and this development will help us boost that by four.

"The extension makes us much more flexible, more creative and innovative."

"Our staff are prepared to go that extra mile too and are aware of consumers' needs."

Established in 1984, Rachel's Organic yogurts, milk, cream, creme fraiche and butter are sold throughout the UK and are served in high-profile outlets such as London's Ritz Hotel.

The origins of the company lie in the severe snowstorms during the winter of 1982 which prevented tankers collecting Rachel Rowlands' farm's milk.

She resurrected old separating equipment and began to produce cream to sell locally.

Two years later the first yogurt was made in the farmhouse kitchen using skimmed milk left over from making the cream.

In 1992, a state-of-the-art �500,000 dairy was opened and a further �350,000 extension was opened in 1998.