THE region's largest farming co-operative has acquired a North Yorkshire animal health business.

Farmway bought Yorkshire Animal Health, in Boroughbridge, for an undisclosed sum.

Yorkshire Animal Health has an annual turnover of about £1.3m and employs five staff.

Peter Hull, chief executive of Farmway, which is based in Piercebridge, County Durham described the move as a strategic acquisition.

He said: "The acquisition will allow Farmway to be the major supplier of animal health products in its trading area throughout the North-East and Yorkshire.

"It will benefit all our customers as we will be able to offer a comprehensive range of animal health products competitively-priced, and with an efficient distribution system."

Paul Burton, who with his wife Teresa formed Yorkshire Animal Health 24 years ago, will continue to manage the company and will be part of the management in the overall health division.

Mr Burton said he was looking forward to being part of Farmway's animal health division, which has been extended significantly during the past two years.

All employees from Yorkshire have been transferred to Farmway, but will continue to work at the Boroughbridge depot.

As part of the investment in the health division, Farmway has built a central store for animal health products.

Mr Hull said this would enable Farmway to control stock more effectively, and that this was a significant investment for the company.

He said: "This store will ensure we have the optimum stock levels at all times.

"Distribution will be controlled centrally and all end-users will receive an efficient delivery service from a dedicated fleet of delivery vans."

This year, Farmway recorded increased turnover of more than £25m and a rise in profits from £50,000 to £300,000.

One of its main operations, Feedco, a joint venture with Lloyds Animal Feeds, saw record volumes of animal feed produced last year.

Farmway has a three-year development plan to update its manufacturing in Piercebridge, with the help of regional development agency One NorthEast.

Published: 18/05/2004