AN organic dairy near Darlington is hoping to expand its business by pasteurising its own milk.

Acorn Dairy, based at Garthorne Farm, Archdeacon Newton, is putting the finishing touches to its new processing plant, which will bring about a substantial increase in the amount of milk processed.

The new plant, which is due to open next month, will pasteurise, homogenise - which means the cream is distributed through the milk, rather than forming a layer on top - and bottle Acorn's organically-produced milk.

Once the plant is up and running, Acorn will be one of only a handful of dairies to process milk on-site.

At present, thirteen local families live directly off the farm and once the doorstep deliveries have reached their target up to 18 staff could be employed by the dairy.

Acorn opened as a fully organic farm in 2000, with the Soil Association seal of approval, and provides doorstep deliveries to homes throughout Darlington and Teesdale, delivering organic milk, butter, yoghurt, breakfast cereal, chicken, vegetables and mineral water.

It also supplies 20 shops throughout Cumbria, Tyneside, Teesside and North Yorkshire, along with some catering outlets, and one school is supplied as part of a pilot scheme.

Cows are fed on produce prepared organically, almost entirely grown on the farm, and where possible are treated with homeopathic remedies.

Graham Tweddle, who manages the dairy, said: "The cows are not under stress to produce 12,000 litres of milk a day like a big dairy farm might - they are only producing half of that. They have generally been healthier since the switch to organic."

The Tweddle family have farmed at Archdeacon Newton for four generations and also farm at Wensleydale, where they supply the Wensleydale Creamery with milk for its organic cheese.

Mr Tweddle said: "The new processing plant will eventually allow us to churn our own butter here too.

"It should increase our output of milk as well."

The Church of England-owned farm, which has been organic for three years, is also part of the Countryside Stewardship Scheme to support the creation of new habitats, with new hedge planting, and a reverted meadow with wildflowers and ponds.

Mr Tweddle said: "We are going back to the way our family farmed after the war, and some of the old tips of getting rid of thistles, etc, without chemicals, are coming in useful."