Müller UK & Ireland has confirmed it will be investing an extra £45m into its Skelmersdale site, following the acquisition of Yew Tree Dairy in October 2024.
Müller has said it will invest significantly into the site, its people and supplying farmers.
The West Lancashire milk production site will have enhanced liquid milk production capacity, capability and quality, and a flagship facility for milk drying, making it one of the biggest and most flexible milk balancing facilities in the UK, the dairy company said.
Following the investment, the site will have the capacity to produce 30% more powdered milk, which will make it a major producer and exporter of powdered milk products made in Britain with milk from British farms.
The extra drying capacity will also give the business significantly enhanced milk balancing capabilities.
Read more: Müller snaps up Yew Tree Dairy in pivot towards dairy ingredients
“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,” said Rob Hutchison, CEO of Müller Milk & Ingredients.
“At the time of the acquisition, we said we wanted to go even further and invest significantly in this location,” he added. “And that’s exactly what we’re doing, we are enhancing our liquid milk production capacity, capability and quality, and creating a flagship facility for milk drying – one of the biggest and most flexible milk balancing sites in the UK.”
In addition, Müller is looking to recruit 40 new employees at the site including control room technicians, forklift drivers, engineers, management and support roles, to support production and maintain service levels.
The new employees would be given training depending on experience, as well as a competitive salary and a range of employment benefits, Müller said.
“With significant investment in the Skelmersdale site, its people and supplying farms, we are creating exciting new opportunities for the whole supply chain, which in turns helps us on our journey to build a better future for British dairy sector,” said Hutchison.
Offering a more stable price
Müller would also be investing in its supplier farm base to ensure security of supply and to help farmers operate successful and progressive enterprises, it said.
The company will be introducing its Müller Advantage programme for Müller Direct Skelmersdale farmers, which will support them to proactively address areas like responsible sourcing, cow health and environmental issues.
In return, Müller would introduce an amended contract offering designed to create a more stable milk price, while offering transparency, it said.
The majority of Skelmersdale supplying farmers currently receive an ingredients-only price but from 1 November 2025, they will have the option to either receive a Müller Direct Skelmersdale price, calculated using a combination of Müller Direct liquid and ingredients price – which uses published global indices, or a Müller Ingredients price.
The changes would create higher annualised and more stable returns for the majority of the site’s supplying farmers, creating the conditions to help plan for the future of their business, the dairy company said.
Completion of the investments at the site are expected by the end of 2026.
“We are proud that global brands such as Müller see the UK as a great place to produce quality food and drinks,” said Daniel Zeichner, minister for food security and rural affairs. “With greater capacity, new growth opportunities will be opened for the site’s supplying farmers along with new job opportunities for the local community.”
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