FARMWAY'S animal feed mill at Piercebridge has become the hub of a new joint venture company - FeedCo.

The new company came into effect this week through an agreement between Farmway and Lloyd's Animal Feeds, the UK's largest privately-owned animal feeds manufacturer.

The existing nine jobs are secure and, with expansion plans already in mind, a small number of new jobs may be created.

FeedCo is planning to invest substantial sums to bring the plant up to its full operating capacity.

The plant has so far been just one part of Farmway's mixed co-operative business and has accounted for about 10pc of its £45m annual turnover.

Lloyd's operates other feed production facilities in Shropshire, Clwyd and in Dorset. It produces and sells 500,000 tonnes of feeds a year.

Part of the attraction of Piercebridge is its proximity to the A1 and A66 and the potential for increased capacity.

FeedCo will continue to produce and deliver all its current specialist diets and will also take on the manufacture and delivery of Lloyd's feeds in the North of England and Southern Scotland.

FeedCo will be headed by Mark Meynell, Lloyd's animal feed division managing director. The board will comprise Mr Meynell, two Lloyd's directors and three from Farmway.

Farmway's other business interests, including animal feed sales, Countryware shops, grain, seed potatoes and fertiliser, are unaffected by the new joint venture.

Dr David Loane, Farmway chief executive, said FeedCo assured the future of the animal feeds operation.

"It capitalises on the excellent production capabilities and delivery logistics of our mill, and it puts at our disposal Lloyd's proven expertise in areas we wanted to improve," he said.

Mr Meynell said Lloyds had been looking for some time to establish a manufacturing base in the North-East to meet a growing demand.

"This is ideal and FeedCo already has expansion in mind," he said.