An up-and-coming Cornish dairy has set out plans to more than double turnover to £25m over the next four years on the back of a major grant win.

Trewithen Dairy has been handed a £5.7m Rural Development Programme for England grant the largest ever awarded in the south west to help it increase production 80% to 44 million litres of milk a year.

The dairy, which currently has a turnover of £12m, sells own-label milk to Asda in the south west through Arla and delivers direct to Waitrose and Aldi in Cornwall.

The move would take the milk processor into "a new league", said MD Bill Clarke. "The project is aimed at future-proofing the business to meet and exceed the more stringent standards required by the big four," he added.

"There's an increasing demand for Cornish products from the supermarkets and those needs are being met by processors in Cornwall, who need Cornish dairy producers. For us, to deliver to Asda has been very important."

Trewithen Dairy is a family-run business and Cornwall's third-largest milk buyer. It supplies all the milk and cream used in Kelly's ice cream, and other high-profile customers include Ginsters and WC Rowe. It also delivers Trewithen Dairy-branded products such as clotted cream and butter direct to independents and has plans to move into soft cheese. Phased expansion of the business will take place over the next four years, increasing the size of the processing area and creating purpose-built offices for its staff, which will be expanded by 40 to 120.

Sales expansion would be split between its three key market sectors of supermarkets, c-stores and ingredients for processors, added Clarke. The plan follows a £1m investment by the company last year in improving facilities and products to meet growing demand for Cornish milk products.

"The project will deliver new and higher-quality jobs as we invest in our people as well as the facilities," Clarke added.