M眉ller has confirmed investment of 拢45m in its Skelmersdale site, its people and supplying farmers, following the acquisition of Yew Tree Dairy in October 2024.
Under the proposed investment, M眉ller 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 M眉ller鈥檚 acquisition of Yew Tree, M眉ller 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鈥檚 supplying farmers.
Investment in supplying farms
The dairy company has said it will introduce its incentivised M眉ller Advantage programme for M眉ller 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.
M眉ller will also introduce an amended contract offering that is designed to create 鈥榓 more stable milk price, while offering transparency鈥�.
鈥淭he announcement of further investment in UK dairy processing is a demonstration of another global brand鈥檚 long-term commitment and confidence in the future of British dairy.鈥�
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 M眉ller Direct Skelmersdale price, calculated using a combination of the existing M眉ller Direct liquid and ingredients price 鈥� which uses published global indices, or a M眉ller Ingredients price.
M眉ller has said the change will create higher annualised and more stable returns for the majority of the site鈥檚 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:
鈥溁始一藈elcomes the announcement of further investment in UK dairy processing and sees it as a demonstration of another global brand鈥檚 long-term commitment and confidence in the future of British dairy.
鈥淲ith 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 鈥� a long-standing ambition of the NFU鈥檚 Dairy Export Strategy.听
鈥淒airy producers supplying the Skelmersdale site have seen a lot of change since M眉ller acquired Yew Tree Dairy last year which we know has led to uncertainty across the milk pool. I am pleased to see M眉ller attempting to address this via its new incentivised Advantage Programme and a more stable price offering.
鈥淗owever, 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.
鈥淚t is important that M眉ller 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.
鈥淲e are speaking regularly with M眉ller to ensure the needs of NFU members impacted by these changes are understood and encourage all producers to get new contracts checked.鈥澨�
- Read more about where the 拢45m will be invested at:
From 29 October 2024, Yew Tree Dairy was acquired by M眉ller Milk & Ingredients, in a move that M眉ller said shows 鈥榗ommitment to a better dairy future, investing in the UK dairy industry, and allowing local farmers to benefit from the global dairy commodities market鈥�.
皇家华人has monitored the acquisition and provided support for affected members. Speaking at the time, Paul said: 鈥淚t 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.鈥�
NFU support
NFU Farmer and Grower members can access the NFU's听Contract Checking Service, offered by the NFU's panel firms of solicitors, in association with the Legal Assistance Scheme.
罢丑别听Legal Panel Firms听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听little as 拢275 plus VAT听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 鈥� this later stage will be charged at the firm鈥檚 standard hourly rate,听minus a 12.5% discount听for NFU Farmer and Grower members.
LAS (Legal Assistance Scheme) subscribers听can apply for a contribution of听拢250 per contract, up to a maximum of four contracts at 拢1,000, from the NFU鈥檚 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听0370 845 8458.
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