Müller UK & Ireland’s £45m investment to create a flagship facility

Müller UK & Ireland is spending an additional £45 million in its West Lancashire (UK) milk production plant to improve the capacity, capabilities, and quality of its liquid milk production as well as establish a flagship facility for milk drying, 

The plans to invest significantly in its Skelmersdale site, its people and supplying farmers, following the acquisition of Yew Tree Dairy in October 2024.

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 –in a bid to unlock new growth opportunities for the site’s supplying farmers.

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.

To support additional production and maintain first class levels of service for its customers, Müller is looking to recruit 40 new employees at the site. Vacancies will range from control room technicians and forklift drivers to engineers, and management and support. 

Müller 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’s supplying farmers.

As a first step, the dairy company will introduce its incentivised Müller Advantage programme for Müller Direct Skelmersdale supplying farmers, an initiative that provides farmers with the knowledge and skills to proactively address areas like responsible sourcing, cow health and environmental issues.

In return, Müller will introduce an amended contract offering that is designed to create a more stable milk price, while offering transparency.

The majority of Skelmersdale supplying farmers currently receive an ingredients only price. From November 1st 2025, all Skelmersdale supplying farmers will have the option to either receive a Müller Direct Skelmersdale price, calculated using a combination of the existing Müller Direct liquid and ingredients price – which uses published global indices, or a Müller Ingredients price.

The changes, which act as a first step on this journey, will 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.

Completion of the investments at the site are expected by the end of 2026.

Rob Hutchison, CEO of Müller Milk & Ingredients noted that post-acquisition of Yew Tree Dairy, the teams have worked constantly to integrate the Skelmersdale operation into the wider Müller business.

“At the time of the acquisition, we said we wanted to go even further and invest significantly in this location,” Hutchison explained. “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.

Hutchison sees the “significant investment” in the Skelmersdale site, its people and supplying farms, as an opportunity for the whole supply chain, and a chance to build a better future for British dairy sector.