New industry cluster will strengthen sheep milk processing, product innovation, and supply chain collaboration to unlock new opportunities for Wales’ dairy sector.
Wales has launched the Dairy Sheep Wales Cluster, a new industry initiative designed to accelerate the development of the country’s sheep milk sector by strengthening processing capabilities, encouraging innovation, and building a commercially sustainable supply chain. The cluster brings together farmers, processors, retailers, researchers, and industry stakeholders to create new opportunities for value-added sheep milk products.
The initiative builds on Welsh Government research that identified significant growth potential for sheep dairying, supported by rising global demand for sheep milk products. It will encourage collaboration across the value chain, facilitate knowledge sharing, and help develop commercial pathways for products such as artisan cheeses, yoghurt, milk powders, and other premium dairy products.
A major component of the programme is the development of the Sheep Milk Dairy at Glynllifon, which will serve as a centre for milk processing, product development, training, and industry demonstration. The facility is expected to help businesses scale production, improve processing technologies, and support the commercialization of innovative sheep milk products.
Unlike well-established dairy sectors, sheep milk production requires coordinated investment across farming, processing, product development, and retail. The new cluster aims to bridge these gaps by connecting producers with processors and food manufacturers while creating a resilient supply chain capable of supporting long-term industry growth.
The project is also expected to create new opportunities for rural businesses by encouraging farm diversification, supporting specialist dairy enterprises, and promoting high-value food manufacturing. Through partnerships with organizations such as Farming Connect and academic institutions, the cluster will provide technical expertise, training, and business support to producers entering the sector.
With growing consumer demand for premium dairy products and specialty cheeses worldwide, the Dairy Sheep Wales Cluster is expected to strengthen Wales’ position in the emerging sheep milk industry. By investing in processing infrastructure, innovation, and supply chain development, the initiative aims to create a competitive, sustainable, and export-oriented dairy sector.