Müller plans to invest in a liquid milk and milk powders plant in the UK the German group bought last year with the acquisition of Yew Tree Dairy.
Germany-based Unternehmensgruppe Theo Müller said it is injecting £45m ($60.2m) to the Skelmersdale site in West Lancashire to “enhance” liquid milk production capacity and to “create a flagship” plant for milk drying.
“With the capacity to produce 30% more powdered milk, the business will become a major producer and exporter of powdered milk products made in Britain, with milk from British farms – unlocking new growth opportunities for the site’s supplying farmers,” Müller UK & Ireland said in a statement.
“Following record high milk production on farm during the 2025 spring flush, the extra drying capacity also gives the business significantly enhanced milk-balancing capabilities.”
The investment project is expected to completed by the end of 2026.
Müller was finally given approval to acquire Yew Tree Dairy by the UK’s Competition and Markets Authority (CMA) in October. It focuses on milk powders, bulk cream, and raw liquid milk sales in the UK and Europe.
Rob Hutchison, CEO of Müller Milk & Ingredients, said: “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, 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.”
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By GlobalDataHe added: “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 turn helps us on our journey to build a better future for British dairy sector.”
Müller plans to bring in 40 new workers at Skelmersdale as a result of the investment.
A spokesperson for the dairy group declined to provide more details on what the investment would involve for commercial reasons when contacted by Just Food but did put the current staff count at Skelmersdale at around 200.
Müller is also investing in a “long-term” project to support the farmers supplying milk to Yew Tree Dairy.
It will launch the “Müller Advantage” incentive scheme to provide farmers “with the knowledge and skills to proactively address areas like responsible sourcing, cow health and environmental issues”.
In return, Müller plans to offer an amended contract designed to create a “more stable milk price and further transparency”.
