Müller has confirmed investment of £45m in its Skelmersdale site, its people and supplying farmers, following the acquisition of Yew Tree Dairy in October 2024.
Under the proposed investment, Müller Skelmersdale aims to become one of the biggest and most flexible milk balancing facilities in the UK, with investment to enhance its liquid milk production capacity, capability and quality, and a flagship facility for milk drying.
After months of changes and disruption following Müller’s acquisition of Yew Tree, Müller has also confirmed, as part of a long-term programme designed to drive security of supply and help farmers operate successful and progressive enterprises, it is investing in its relationships with the site’s supplying farmers.
Investment in supplying farms
The dairy company has said it will introduce its incentivised Müller Advantage programme for Müller Direct Skelmersdale supplying farmers, an initiative that aims to provide farmers with the knowledge and skills to proactively address areas like responsible sourcing, cow health and environmental issues.
Müller will also introduce an amended contract offering that is designed to create ‘a more stable milk price, while offering transparency’.
“The announcement of further investment in UK dairy processing is a demonstration of another global brand’s long-term commitment and confidence in the future of British dairy.”
NFU Dairy Board Chair Paul Tompkins
The majority of Skelmersdale supplying farmers currently receive an ingredients only price. From 1 November 2025, all Skelmersdale supplying farmers will have the option to either receive a Müller Direct Skelmersdale price, calculated using a combination of the existing Müller Direct liquid and ingredients price – which uses published global indices, or a Müller Ingredients price.
Müller has said the change will create higher annualised and more stable returns for the majority of the site’s supplying farmers, creating the conditions to help producers plan for the future of their business.
Completion of the investments at the site are expected by the end of 2026.
Fair prices across the board
Commenting on the announcement, NFU Dairy Board Chair Paul Tompkins said:
“The NFU welcomes the announcement of further investment in UK dairy processing and sees it as a demonstration of another global brand’s long-term commitment and confidence in the future of British dairy.
“With milk volumes hitting new records this season, investment in additional capacity and milk balancing facilities is vital and will help add value to the supply chain and drive exports of British milk productions – a long-standing ambition of the NFU’s Dairy Export Strategy.
“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. I am pleased to see Müller attempting to address this via its new incentivised Advantage Programme and a more stable price offering.
“However, while the majority of suppliers will hopefully see higher, more stable returns as a result of these changes, we know that not all production systems will benefit from these adjustments.
“It is important that Müller continues to work closely with all its suppliers and customers to ease the pressure of any transition and help ensure producers receive a fair, transparent and sustainable price which aligns with the spirit of the new fair dealing obligations regulations.
“We are speaking regularly with Müller to ensure the needs of NFU members impacted by these changes are understood and encourage all producers to get new contracts checked.”
- Read more about where the £45m will be invested at: Müller news | Müller confirms £45m investment in Skelmersdale site
From 29 October 2024, Yew Tree Dairy was acquired by Müller Milk & Ingredients, in a move that Müller said shows ‘commitment to a better dairy future, investing in the UK dairy industry, and allowing local farmers to benefit from the global dairy commodities market’.
The NFU has monitored the acquisition and provided support for affected members. Speaking at the time, Paul said: “It is vital that these producers are continued to be kept fully informed and receive regular updates to ensure any impact on their farms and businesses is fully understood.”
NFU support
NFU Farmer and Grower members can access the NFU's Contract Checking Service, offered by the NFU's panel firms of solicitors, in association with the Legal Assistance Scheme.
The Legal Panel Firms will provide a fixed fee quote for carrying out an initial review of a contract and producing a report, based on your objectives and requirements.
Fees vary, but prices can start from as little as £275 plus VAT for the initial report.
If you wish, the panel firm will also be able to consider the contract in more detail and assist with the renegotiation of specific terms, as well as advising on the implications for your business – this later stage will be charged at the firm’s standard hourly rate, minus a 12.5% discount for NFU Farmer and Grower members.
LAS (Legal Assistance Scheme) subscribers can apply for a contribution of £250 per contract, up to a maximum of four contracts at £1,000, from the NFU’s Legal Assistance Scheme as part of the contract checking package.
The panel firms will be able to advise on all aspects of a contract, including whether it is compliant with the new regulations.
NFU members can obtain free initial legal and professional advice via NFU CallFirst on 0370 845 8458.
