The dairy company has announced a major investment in its Skelmersdale site, following last year’s acquisition of Yew Tree Dairy.
Müller UK & Ireland is investing £45 million in its West Lancashire milk production site to boost capacity, improve quality and capabilities in liquid milk production, and establish a flagship facility for milk drying.
According to Müller, the Skelmersdale site is set to become the UK's largest and most flexible milk balancing facility.
The investment will enable the site to increase powdered milk production by 30%, positioning it as a leading producer and exporter of British-made powdered milk products using milk sourced from British farmers.
To support the increased capacity, Müller will launch a recruitment drive to hire 40 new employees. The vacancies will include roles such as control room technicians, forklift drivers, engineers, as well as positions in management and support functions.
The investment will also be used by the dairy company to strengthen partnerships with the farmers who supply the Skelmersdale site.
Its first move will be to roll out the ‘Müller Advantage’ incentive scheme to Müller Direct farmers serving Skelmersdale, providing them with training and resources to proactively improve cow welfare and address environmental challenges.
In return, Müller will introduce a revised contract offering aimed at providing greater price stability and increased transparency for its supplying farmers.
Currently, most farmers supplying the Skelmersdale site are paid an ingredients-only price. Starting in November, all these farmers will have the option to switch to a Müller Direct Skelmersdale price, which is calculated based on a blend of the existing Müller Direct liquid and ingredients prices, using published global indices.
Müller affirms that these changes will deliver higher annualised returns and greater price stability for most farmers supplying the site.
The investment in Skelmersdale comes after Müller’s acquisition of Yew Tree Dairy in October 2024. Since then, the team has been focused on integrating the Skelmersdale site into the broader business.
Rob Hutchison, Müller Milk & Ingredients CEO, 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.'
“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.”
The site’s investment projects are expected for completion by the close of 2026.