Müller UK & Ireland has announced plans to invest £45 million into its Skelmersdale milk processing plant following its acquisition of the Yew Tree Dairy in October 2024.
The investment will aim to improve milk production capacity and quality in the west Lancashire plant.
Müller have said that its Skelmersdale plant will become one of the biggest milk balancing facilities in the UK following the investment.
The cash injection will see the plant’s capacity to produce powdered milk rise by 30%, making the business a major producer and exporter of powdered milk products in Britain.
The German company expects the on-site investments to be finished by the end of 2026.
Farm investment
Müller stated that the investment will also aim to improve supplier relationships, in a bid to improve farm security.
This will primarily be done through amended contracts, with farmers being able to chose between two payment options from November 1, 2025, which the company said should stabilise milk prices.
Currently, farmers suppling Müller are given an ‘ingredients only’ price. However, supplying farmers will soon be able to switch to ‘Müller Direct’ Skelmersdale price.
The company have said that this will be calculated using a combination of the existing ‘Müller Direct’ liquid and ingredients price which uses published global indices.
The investment will also see the launch of the incentivised Müller advantage programme, which aims to give farmers the knowledge and skills to proactively address areas like responsible sourcing, cow health, and environmental issues.
Müller said these changes will create higher and more stable returns for the majority of the site’s supplying farmers.
Müller
Müller Milk & Ingredients CEO, Rob Hutchison, said: “Since we acquired Yew Tree Dairy, the teams have been working day and night, not just internally, but closely with its customers and suppliers to integrate the Skelmersdale operation into the wider Müller business.
“At the time of the acquisition, we said we wanted to go even further and invest significantly in this location, and that’s exactly what we’re doing.”
Hutchinson said that by developing a high-capacity, flagship facility for milk drying, Müller is creating opportunities for the whole supply chain.
Minister of State for Food Security and Rural Affairs, Daniel Zeichner, said: “Britain is a great place for dairy farming and has an excellent reputation for quality, welfare standards and sustainability.
“We are proud that global brands such as Müller see the UK as a great place to produce quality food and drinks.”
Minister Zeichner said that this investment is an example of the government’s plan for change in action, which boosts growth for businesses and farmers, as well as creating new job opportunities
National Farmers’ Union (NFU) dairy board chair Paul Tompkins said that the NFU welcome this new investment as it demonstrates Müller’s commitment to the UK’s dairy industry.
Tompkins said; “Dairy producers supplying the Skelmersdale site have seen a lot of change since Müller acquired Yew Tree Dairy last year, which we know has led to uncertainty across the milk pool.
NFU Scotland milk committee chair Bruce Mackie also welcomed the news, as he said suppliers under the Yew Tree contract are struggling to survive on current milk prices.
However, Mackie called for interim prices to be considered urgently before the new contract dates become available in November.
