Traditionally, farmers are not known as the movers and shakers in the world of commerce. But that could be changing.

Like many things, it's a change being driven by necessity - a survival strategy for farmers facing diminishing returns for their hard graft.

Tony Norman is one such farmer. He and his wife Babs have been working their mixed Herefordshire farm for more than 30 years. For much of this time they have followed the well-trodden path selling their organic vegetables to the supermarkets and their organic milk to one of the big co-operatives.

But a year ago they and three fellow organic dairy farmers did the unimaginable - they joined forces to buy their own factory, The Dairy House in Weobley.

By Tony's own admission, getting farmers to work together is an achievement in itself.

"We tend to be very independent," he said.

"Buying the factory wasn't something that happened overnight. We were all members of the First Milk co-operative and would meet regularly anyway. The idea of a factory was something that gradually emerged over a great deal of discussion and a certain amount of beer."

Together, Tony and his three partners produce four million litres of organic milk a year. Tony converted to organic production five years ago. But he believes the clamour to convert, fuelled by the promise of Government grants, has brought its own problems.

"Simply too many of us have converted and it has driven down the price of organic milk, it's just a question of supply and demand," he said.

They quickly recognised that they were facing tough times and was soon proved right when prices plunged by a third, throwing many farmers into financial turmoil.

"It's not just the small and medium-sized dairy farms that are being affected. I've known large farms forced to sell. We're all struggling."

With so much organic milk and very little return for their labour, Tony and his three colleagues began pondering an alternative.

If they couldn't sell their organic milk at a decent price, they would use it to produce goods which would generate a reasonable income.

Following a feasibility study and further research, a possible business was identified. The Dairy House was already producing organic creams, butter and yoghurts, but after two and a half decades, the owner, Pru Lloyd, was ready to hand over the reigns.

The four farmers struck a deal with Pru which would leave her to manage the business in its first year, after which she would become a consultant. A company was set up with each farmer being made a director.

But to build on the factory's success it would take a concerted effort from all those involved. "We might be the directors," said Tony.

"But there are still times, when we're needed to fill the yoghurt pots or something, when each family takes its turn with the farmers' markets.

"We all step in when needed. But at the same time, we've still got our own farms to run. It's been a very steep learning curve for all of us but we have had Pru to guide us."

After a year as manager Pru has moved into her consultant role, leaving the running of the factory to Tony's 25-year-old son Richard. His other son Chris, 24, tends the family's dairy herd.

Pru was already attending several farmers' markets with Dairy House goods so it seemed natural to continue. Along with his other commitments, Tony co-ordinates the farmers' markets side of the business.

"You never know who is on the other side of the table when you are at a farmers' market. It could be a pensioner out shopping, a local chef or a buyer from a big company.

"In many ways the markets act as a flagship for local goods. They are a way of promoting your business and getting the name known. At the same time, each farmers' market has to pay its way. It's also nice to see so many local farmers working together and helping each other out, as they do."

Produce from the Dairy House is sold at farmers' markets over a wide region from Brecon to Mosely in Birmingham as well as Hereford, Ludlow and Worcester.

A year on and Tony is cautiously optimistic about the future for The Dairy House. "Since we've taken over the business we have expanded the organic side and increased sales. We were looking at the figures recently and business is 50 per cent up compared with the same week last year, so we must be doing something right.

"We seem to be expanding on all fronts - into Worcestershire, Gloucestershire and Powys. We provide dairy products for farm shops, post offices, restaurants and pubs and we now supply some national names such as The House of Fraser in Birmingham.

"But if shoppers are unable to get to any of these, we do have our own small factory shop as well.

"Many of our products are organic or contain organic ingredients. As well as the creams, yoghurts and cheesecakes, we offer mild, mature and smoked organic Cheddar cheese, and our butter with sea salt."

The Dairy House was bought as a means of providing improved returns on the partners' organic milk and is already living up to early expectations.

"We now use 500,000 litres of our milk in the factory but ultimately we would like to be in a position where we are using all of our milk but that will mean growing 10-fold in size and we're some way from achieving that at present."

For more information on The Dairy House call 01544 318815 or visit www.thedairyhouse.co.uk