Silverwood Dairy Factory Company Limited’s factory, built adjacent to the Terrors Creek Creamery, was opened by Sir Herbert Chermside, the Governor of Queensland, on 14th September 1903. The company also built a general store on an adjoining block in 1906.
In 1916 the farmers formed a co-operative known as the Terrors Creek-Samsonvale Co-operative Dairy Factory Company to take over the local business of the Silverwood Butter Factory. The store and adjacent residence were destroyed by fire on 26th May 1924. The factory building was partially destroyed by fire on 15th May 1929 but was able to remain open.
The Butter Factory closed on 30th June 1965 as it was felt it had outlived its usefulness. Most of the factory’s 90 suppliers had their milk taken direct to Brisbane, 26 miles (approx. 42km) from Dayboro.