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Muller begins expansion into Great Britain

Following the acquisition of Yew Tree Dairy, the dairy company is investing £45m in its Skelmersdale site.

After receiving the long-awaited approval from the Competition and Markets Authority (CMA) in October 2024 for the acquisition of Yew Tree Dairy, a family-run dairy company producing fresh milk and cream, acquired last June, Müller UK & Ireland is now ready to expand in England. The German dairy company has unveiled a significant investment plan for its Skelmersdale site, its staff, and its farmers: it will invest an additional £45 million in the West Lancashire dairy production site to improve liquid milk production capacity, capacity, and quality, and to create a state-of-the-art milk drying facility. Investments at the site are expected to be completed by the end of 2026.

Müller Skelmersdale, the official press release emphasizes, "will become one of the largest and most flexible milk balancing plants in the UK." With the capacity to produce 30% more milk powder, the company will become "one of the leading producers and exporters of powdered products produced in Great Britain," with milk sourced from British farms, opening up new growth opportunities for the site's dairy farmers. Following the farm's record milk production during the 2025 spring season, the additional drying capacity will allow the company to significantly improve its milk balancing capabilities.

To support increased production and maintain first-class customer service, Müller is seeking to hire 40 new employees at the site. The positions will range from control room technicians and forklift drivers to engineers, management, and support.

Müller also confirmed that, "as part of a long-term program aimed at ensuring security of supply and helping farmers run successful, forward-thinking businesses, it is investing in relationships with the site's supplier farmers." As a first step, the company will introduce the Müller Advantage incentive program for Müller Direct Skelmersdale supplier farmers. This initiative provides farmers with the knowledge and expertise to proactively address areas such as responsible sourcing, cow health, and environmental issues.

In return, Müller will introduce a revised contract offering designed to create a more stable milk price and provide transparency. Most Skelmersdale farmer suppliers currently receive a price based only on ingredients. Starting November 1, 2025, all Skelmersdale farmer suppliers will be able to choose whether to receive a Müller Direct Skelmersdale price, calculated using a combination of the current Müller Direct price for liquids and ingredients, which uses published global indices, or a Müller Ingredients price.

The changes, which represent the first step in this journey, "will create higher and more stable annualized returns for the majority of the site's farmer suppliers," creating the conditions to help them plan for the future of their business.

"Since we acquired Yew Tree Dairy," explains Rob Hutchison , CEO of Müller Milk & Ingredients, "we've said we wanted to go further and invest significantly in this site. And that's exactly what we're doing: we're enhancing our liquid milk production capacity, capacity and quality, and we're creating a state-of-the-art milk drying facility, one of the largest and most flexible milk balancing sites in the UK."

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EFA News - European Food Agency
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