Building work on a 60,000 tonne cheese plant in Cumbria could begin in April after a breakthrough on milk supplies last week.

The company behind the £60m plant, Partners in Cheese, has already secured support from Asda, which buys cheese from a dedicated factory just 15 miles away at Aspatria. Now PIC has dropped efforts to woo Aspatria's Cumbrian suppliers after milk co-op Dairy Farmers of Britain threw its hat into the ring.

Aspatria farmers who did express interest in the project have had their £250 deposits returned in the strongest possible sign that an alternative milk supply has been found after three years of searching.

A spokesman for DFB refused to speculate on the talks with PIC, but said a state-of-the-art commodity cheese plant would produce major benefits for its members. Building could begin as soon as 1 April, according to PIC managing director Robert Akerman.

Cheese supplier Bradbury's has said it will buy the plant's output, and one of the firm's major retail customers , Asda, also said it could do some business with PIC. "First Milk has not got exclusivity," said Asda's Chris Brown. The store wanted what was best for the farmers who supplied the milk for its cheese, he added.

It comes as a blow to First Milk, which has only just acquired Aspatria and its Asda business from Dairy Crest. A spokesman for the co-op said it was still committed to Asda . It also has a head start with 18 months in which to impress the retailer before PIC even completes its new plant.

"First Milk is in Cumbria and it's here to stay," said a spokesman. We have over 300 members in the county, a well-run creamery and an extremely good relationship with Asda. This is being developed through the setting-up of a supplier pool for Aspatria, and discussions on new product development, including a Lake District/Cumbria cheese brand."

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