John Gile began making cheese at Forfar in 1863. The factory was originally situated ½ mile north of Forfar but the factory burnt down and was then rebuilt within the village. Due to financial troubles and more fire, the business changed hands a few more times before it was finally rebuilt at it's present day location, in 1922.

In 1963, sixteen resident farmers formed a cooperative to purchase the factory and save it from closure. The business prospered under the leadership of Talmage Stone and more additions to the building were made. The business was sold in 2001 to another group of local residents. There are presently, in Ontario, very few small, independent cheese factories still in operation, with Forfar Dairy having the distinction of being the oldest.

Historically, Forfar Dairy has been producing some of Canada's finest cheddar for over 139 years. Situated in rural Leeds County, in Eastern Ontario, Forfar Dairy is practicing traditional cheese making with their rare old cheddar(5 year plus) still being made in 90 pound rounds.

The company has grown to where the cheese is distributed through numerous factory outlets across Canada along with the many stores already carrying Forfar Dairy products. Others receive their cheese through mail orders which are shipped from the factory to destinations across Canada, United States and throughout the world.