TWO large Pembrokeshire dairy herds are to be sold this month as a casualty of the downturn in milk prices.

Frederick Hiam Ltd, which produces milk at Corston, near Pembroke, and Broadmoor, near Haverfordwest, said it would be exiting dairy farming after 40 years. It will result in the loss of eight jobs.

Announcing the news on Twitter, the company described it as a “very sad day’’.

The company runs two high yielding Holstein Friesian herds, totalling around 700 cows. The operation produces seven million litres of milk annually with the milk sold for cheese manufacturing.

Frederick Hiam Ltd also has five sites located around the Norfolk/Suffolk border and in Cambridgeshire, specialising in potatoes, onions, parsnips, sugar beet and wheat.

One member of its Pembrokeshire workforce, Simon Snape, reacted to the news of the sale on Facebook: “Looks like I am looking for a job, a loss of 800 dairy cows and two large dairy farms to Pembrokeshire.’’

The dispersal of the herds will start on Wednesday, June 15, at Carmarthen Livestock Mart and will continue over the following weeks.

Frederick Hiam Ltd started dairy farming 40 years ago in Pembrokeshire. The downturn in milk prices over the past two years has forced the business to reassess its future.

In a statement, company chairman Christopher Wilson said his family had been farming in Wales for two generations. “It is sad for us that we are leaving Wales but we cannot ignore the marketplace. Despite our best efforts we have reluctantly concluded that we cannot continue under these circumstances.”

Mr Wilson said staff had worked hard to ensure the success of the dairies, including farm manager Darren Callan. “Darren and his team have done a superb job,” said Mr Wilson. “The condition and performance of the farms and livestock is down to their diligence and expertise. This outcome is disappointing for them too but we are doing all we can to make things as bearable as can be.”

Lindsay Hargreaves, Frederick Hiam managing director, said the company and its shareholders had not taken the decision to exit dairying lightly. “This is a major shift for the company and also for the industry,” he said.

The lack of stability and commitment shown towards primary milk producers had created a commercial environment that the company could no longer tolerate, Mr Hargreaves added.

In contrast, in neighbouring Carmarthenshire, one dairy farmer with a herd of around 1700 cows is planning further expansion.

Howell Richards has lodged a planning application for housing and infrastructure to accommodate 350 cows at Cwrt Malle Farm, Llangynog.

The application was withdrawn last May but has been lodged with Carmarthenshire County Council again.

The application is controversial. Local Assembly Member, Angela Burns, described it as “unthinkable” that another 350 cows should be added to the development. "The large scale, more industrialised type of farming that we are seeing at Cwrt Malle is causing havoc for surrounding residents and motorists."

In a letter to the council’s planning department, local county councillor Jeff Thomas, described it as an application of “great sensitivity’’ due to concerns about environmental, noise and traffic issues.

The application will be discussed by the councillors on Carmarthenshire Council planning committee over the coming weeks.