A new Dairy Sheep Cluster has been launched at the Royal Welsh Show, bringing together farmers, processors, retailers, academia and industry stakeholders to accelerate the development of a sustainable Welsh sheep milk sector.

The Food & Drink Wales Dairy Sheep Cluster has been established following Welsh Government-commissioned research into the commercial potential of sheep dairying. That work identified growing global demand for sheep milk products and highlighted opportunities to develop a new premium dairy category supported by Wales’ established sheep farming industry.

While the launch marks the creation of a new collaborative network, its longer-term significance lies in its ambition to build an integrated supply chain capable of supporting commercial production, processing and market development.

The cluster will encourage collaboration across the value chain, facilitate knowledge exchange and help develop commercial pathways for sheep milk products. Its work will include engaging producers, supporting food businesses exploring the category and creating the conditions needed for long-term industry growth.

Llŷr Gruffydd MS, Cabinet Secretary for Rural Resilience and Sustainability, said the initiative represents an important step in developing a new opportunity for Welsh agriculture and food manufacturing.

“The launch of the Food & Drink Wales Dairy Sheep Cluster represents an important step in the development of a new opportunity for Welsh agriculture and food production.

“Research commissioned by the Welsh Government has highlighted the considerable potential for sheep dairying in Wales. Combined with growing market demand and investment in strategic infrastructure such as the Sheep Milk Dairy at Glynllifon, there is a strong foundation upon which to grow the sector.

“The cluster will play an important role in bringing together expertise from across the supply chain and supporting the development of a resilient, innovative and commercially sustainable industry.”

Building the supply chain

Unlike established dairy sectors, the sheep milk industry requires coordinated investment across multiple stages of the value chain, from production through to processing, product development and retail distribution.

The cluster aims to address those challenges by bringing together organisations that can collectively help establish a commercially viable industry. Alongside producers, it will work with processors, manufacturers, retailers, educational institutions and support organisations to strengthen technical capability and improve market confidence.

Among its partners are Glynllifon College, which is developing a purpose-built Sheep Milk Dairy and demonstration facility, and Farming Connect, which will support farmers and food businesses interested in entering the sector.

James Holloway, Food & Drink Wales Dairy Sheep Cluster lead, said the initiative builds on several years of research and industry engagement.

“The establishment of the cluster builds upon several years of research, industry engagement and partnership working supported by the Welsh Government.

“The research work highlighted strong potential for sheep dairying in Wales, together with encouraging levels of interest from both producers and the wider supply chain.

“The cluster will provide a platform for collaboration, enabling stakeholders to identify opportunities, address challenges and support the development of a successful Welsh sheep milk industry.”

Opportunity for processors and manufacturers

For processors and food manufacturers, the initiative could create opportunities to diversify premium dairy portfolios as consumer interest in speciality cheeses, yoghurts and other value-added dairy products continues to grow.

Carwyn Adams, managing director of Caws Cenarth, said the business has already seen the commercial potential of sheep milk through its Black Sheep cheese.

“At Caws Cenarth, we have seen first-hand the opportunities that sheep milk can offer through products such as our Black Sheep cheese, which has helped showcase the unique qualities of sheep milk to a wider consumer audience.

“There is increasing demand for premium dairy products with strong provenance and quality credentials, and Wales is well placed to respond to this growing market opportunity.

“The establishment of the cluster provides an important opportunity to bring together producers, processors and industry partners, helping to strengthen the supply chain and create new opportunities for Welsh sheep milk products.”

As the sector develops, collaboration between producers, processors, manufacturers and retailers will be central to overcoming the technical and commercial challenges of bringing new sheep milk products to market at scale.