The future of an Anglesey cheese plant is in doubt after its owners said it had failed to secure funding to stay in business.

The £20m Mona Dairy opened two years ago at Gwalchmai on the island, focusing on making Welsh and continental cheeses and supplied with milk by about 30 farms in the region.

In a statement today the dairy said: "After five years of striving to develop the newest and most sustainable cheese factory in Europe, and fighting against many factors outside of our control, Mona Dairy in Anglesey is sad to announce that it has failed to source sufficient short-term funding from its key stakeholders to keep functioning in its current form.

"We remain hopeful that we can secure a new outcome in the coming days and Mona Dairy will be able to continue its journey, even if that means it is under new ownership.

"The key priority of the main individual shareholders David Wynne-Finch and Ronald Akkerman is now to secure a safe home for our 31 farmers and for our loyal, dedicated staff, who believed in our vision and supported us on our journey.

"We will be keeping our staff on for as long as we can, as we work through our options.

"For our farmers, we have secured an established dairy processing company as an interim milk buyer who will take their milk in the short-term, should they wish it. They will be paid for any milk supplied under this interim arrangement by that milk buyer.

"We will update you on the on-going situation as and when we can."

The facility is powered by renewable energy and has the potential to produce 30,000 tonnes of continental cheese a year. Mona Dairy’s commitment to drive down the carbon footprint of cheese production saw them being the first in the UK to utilise electric lorries for milk collections.

FUW Milk and Dairy Produce Committee Chair Brian Walters said: “Undoubtedly, this loss will be hard hitting for both the local economy and the 31 producers that currently supply milk to Mona Dairy.

“Dairy farmers throughout Wales are facing an unprecedented period of uncertainty, having dealt with the difficulties of a long wet winter alongside the continuing turmoil of changes to future agricultural support and red tape.

“Compliance with the Control of Agricultural Pollution regulations and the ever tightening noose of bovine TB infections continue to bring great difficulties and extortionate costs to the sector.

“We hope that as a result of a weak spring flush and an improving dairy commodities market, other milk processors will be in a favourable position to support milk producers currently supplying Mona Dairy.

“However, for a more permanent resolution, it is hoped that a new buyer could be sought to take advantage of these innovative facilities at the site on Ynys Môn. Given the sustainability credentials and economic opportunity that Mona Dairy has to offer, we call on the Welsh Government for support in facilitating a positive outcome for the business.

“FUW members affected by this news are welcome to contact their county offices for guidance and support during this challenging time,” Mr Walters concluded.