The massive £45 million investment from Muller into the Skelmersdale site is welcomed by the industry as a clear indication of confidence in the future of the UK dairy sector.
The dairy giant confirmed that it will upgrade the facility that was acquired in October 2024 as part of its purchase of yew tree dairy products.
The multimillion-pound investment in the Lancashire site will increase liquid milk production, milk drying capacity, and overall product quality.
In addition to infrastructure upgrades, Dairy Processor Muller announced it is strengthening its relationship with farmers’ supply.
As part of a long-term program to ensure supply security and promote progressive and sustainable dairy companies, the company will roll out the Muller Advantage scheme, which is incentivized for farmers at Muller Direct Skelmersdale.
The program is designed to enable producers to actively address key areas such as responsible sourcing, environmental impacts and animal welfare.
Muller will also introduce a revised contract structure aimed at providing greater pricing transparency and long-term stability.
Paul Tompkins, chairman of the NFU Dairy Board, said, “NFU welcomes the announcement of further investments in dairy processing in the UK and views it as a demonstration of the long-term commitment and trust of another global brand for the future of UK dairy products.”
Currently, most Skelmersdale suppliers receive the price of materials only. However, starting from November 1, 2025, you will be able to choose from two pricing models, including the new Muller Direct Skelmersdale price calculated using Muller’s existing liquid and ingredient pricing blend.
Producers can also choose the price of traditional Muller ingredients. The processor says this change will result in more stable returns for most suppliers, helping them plan more effectively for the future.
Tompkins noted that since the dairy farmers supplying the Skelmersdale site acquired yew tree dairy products, it has faced substantial disruption, creating widespread uncertainty within the milk pool.
However, he states: “We’re happy to see Muller try to address this through a new incentive advantage program and offering a more stable price.”
He expressed his hope that most farmers would benefit from a more consistent increase in profits, but he acknowledged that not all production systems could benefit equally.
Tompkins also highlighted the need for Muller to maintain strong communication and cooperation with both suppliers and customers, support a smoother transition, and provide fair and transparent pricing.
He said: “It remains important for Muller to work closely with all suppliers to ease transition pressures and ensure that producers receive fair, transparent, sustainable prices that are consistent with the spirit of new fair trading obligation regulations.”
At the time of the acquisition last year, Tompkins highlighted the need for clear communication, saying, “It is important to continue to provide sufficient information to these producers and receive regular updates to ensure that the impact on farms and businesses is fully understood.”
Skelmersdale’s investment is expected to be completed by the end of 2026.
