All profits will go to the Prince of Wales's Charitable Foundation.

The new Duchy Originals Foods Limited bakery will produce a range of organic pasties and pastries in Launceston.

The Duke of Cornwall set up the organic and natural food brand in 1990, producing oaten biscuits.

About 10 staff - rising to 20 in two years - will work at the bakery, which is planned to open for full production next April.

It's great that Duchy Originals is bringing it home to the area it takes its name from Hilary Wood, Food from Cornwall

The managing director of Duchy Originals, Belinda Gooding, said it is hoped the development will generate growth for the local economy.

She said: "Cornwall has a strong affinity with Duchy Originals and it was important for us to base the bakery in the region."

The news has been welcomed by other food producers in the county.

Hilary Wood from Food from Cornwall said: "This is really excellent news, not just for the employment, but the more local organic produce the better.

"It's also good because it's pushing quality and will hopefully broaden the demand for food produced in Cornwall.

"I think it's great that Duchy Originals is bringing it home to the area it takes its name from."