Felinfach Creamery was opened on 10 May 1951 by the Milk Marketing Board, as a development of the milk factory at Pont Llanio. It received milk daily from up to 2,000 local farms. The creamery was served by rail (the former Lampeter, Aberayron & New Quay Light Railway, which was used to transport the milk mainly to London, until the railway closed in 1973.

Bulk milk distribution, milk powder and butter manufacture were carried out at the creamery; there was also a cattle-breeding centre providing an AI (artificial insemination) service, a laboratory, staff cottages and a transport depot.