Unigate has just acquired a purpose built organic dairy facility at Thornbury, South Gloucestershire.
The site will produce organic liquid milk for retail multiples.
Organic liquid milk is estimated to be worth £8m at retail, comprising 1.3% of all liquid milk sales.
"This is expected to reach 10% of all liquid milk sales by 2005," said Unigate marketing controller Gina Overton.
"We will also continue to work very closely with farming groups to ensure the continuity of supply and the integrity of products sold."
Current Unigate customers for organic milk include Tesco, Safeway and Somerfield.
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