Two of Wales’ best known organic dairy brands are combining their milk supply for processing and their market experience to increase business and reduce their carbon footprints.

Pembrokeshire-based Calon Wen and Daioni Organic have agreed to merge their milk supply for processing and production, while retaining their separate brands and identities.

This collaboration enables the businesses to achieve scale and efficiencies amidst heightened competition across the global supply chain.

Dai Miles, managing director of Calon Wen, said that given the strong ambition of both companies to grow, working together on certain operations made sense in today’s marketplace.

Citing the recent Gulfood Exhibition in Dubai as an example, where Daioni products were featured on Calon Wen’s booth on the Welsh government’s stand,

Mr Miles said, “If we put our heads together, we believe we can capitalise on more opportunities in the marketplace.

“We are both members of Food & Drink Wales Fine Food Cluster and Export Cluster and our collaboration is a great example of the benefits of the Cluster programme.”

“Our businesses are not merging, we’ve got separate brand portfolios, but by collaborating, we hope it will create more opportunities for both of us.”

Founder of Daioni Organic, Laurence Harris, said: “We have always known and respected each other and our brands. Both our dairy businesses are built upon firm organic principles, with inherent respect for the land and the animals in our care.

"It makes sense for us to work together to bring our products to market and help each other grow.

“Daioni Organic has built a well-respected and recognised brand in the Asia Pacific region, with markets also in the Middle East. We will be working with Calon Wen to develop and expand these overseas markets for both companies.”

Launched in 2000, Narberth-based Calon Wen is a co-operative of 25 family-run organic dairy farms from across Wales. Producers of award-winning milk, cheese and butter, Calon Wen’s range can be found in multiple retailers and independent outlets across Wales and sold online.

The company’s products are also exported to Japan and the Middle East – including the UAE.

Fellow Pembrokeshire producer, Daioni Organic was launched in 2003. Its range of organic flavoured milk drinks has reaped numerous awards and the product range also includes long-life milk and ready-to-drink organic Fairtrade coffee.

Sold throughout the United Kingdom, Daioni Organic’s products are also exported worldwide, and the company’s milk was the first British organic milk certified for sale in China.

Mr Miles said the collaboration will not affect the individual Calon Wen and Daioni brands nor their existing loyalties but will help bolster their market position.

Mr Miles said: “With the combined strength of two businesses and a full range of dairy products we are hoping to hit the ground running in gaining new markets.”

Mr Harris said: “It is an exciting time. We see this move as the way forward to develop our businesses and also secure better returns for organic farmers. As relatively small businesses amidst the corporate hegemonies, we look forward to building economies of scale, enhancing efficiencies and reducing our carbon footprint.

“Ultimately, organic farming is a sustainable food production system. We wish to ensure that the business of bringing organic farming to market is as sustainable as possible by maximising the synergies between Daioni Organic and Calon Wen.”