The expansion could provide abother 50 jobs

Work will start on a �3m scheme to expand Aberystwyth-based Rachel's Organic Dairy in October.

The extension, substantially funded by the Welsh Development Agency and due for completion by next summer, will help the company increase sales and meet growing customer demand.

These include orders from Sainsbury, Safeway, Tesco, Asda and Waitrose.

We are in a very competitive market and need to respond to consumer demand for existing and new and exciting products Neil Burchell, managing director

The company is also looking to target new export markets after its successful entrance into the Irish market this year.

Rachel's employs 95 staff at its dairy on the Glanyrafon Industrial Estate on the outskirts of Aberystwyth.

Flagship

During the past two years, turnover has increased by more than 50 per cent with 10 million pots of organic yogurt produced annually.

The workforce is expected to increase to 150 over the next three years.

"We are in a very competitive market and need to respond to consumer demand for existing and new and exciting products," said company managing director Neil Burchell.

"The new facility will provide important scope for new product development and allow accelerated brand growth.

"Also, we will have increased capacity to produce more volume to meet demand."

The company's outlets includes the Londodn Ritz

Established more than 22 years ago, Rachel's is now one of Wales' flagship food companies.

Its range of yogurts, milk, cream, creme fraiche and butter are widely available throughout the UK as well as being served in high-profile outlets such as the London Ritz, Ikea and on Eurostar.

The origins of the company lie in the severe snowstorms during the winter of 1982 which prevented milk 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 extensions was set up in 1998.

The company was taken over by America's top organic milk producer Horizon Organic dairy in April 1999.