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Müller UK & Ireland has confirmed a £45 million investment aimed at bolstering its Skelmersdale, West Lancashire, dairy facility, following the acquisition of Yew Tree Dairy in October 2024. This move aims to enhance production capabilities and quality, positioning Müller as a key player in the UK dairy sector.

The Skelmersdale site will undergo extensive upgrades to improve its liquid milk production capabilities and establish a flagship facility for milk drying. With this investment, Müller aims to increase powdered milk production by 30%, thereby enhancing its ability to meet both domestic and export demand for British-made powdered milk products.

This expansion comes in response to the recent surge in milk production during the 2025 spring flush, enabling Müller to bolster its milk balancing capabilities. The strategic enhancement of the Skelmersdale facility will not only solidify its status as one of the largest and most flexible milk balancing sites in the UK but also create new growth opportunities for local farmers who supply milk to the site.

To support the anticipated increase in production, Müller plans to recruit 40 new employees across various roles, including control room technicians, forklift drivers, engineers and management positions. The company highlights its commitment to workforce development, offering competitive salaries and comprehensive training programs tailored to the experience levels of new hires.

Müller is also focused on enhancing its relationships with local farmers through the introduction of the Müller Advantage programme. This initiative aims to equip farmers with essential knowledge and skills to address critical issues such as responsible sourcing, cow health and environmental sustainability.

As part of this effort, Müller will revise its pricing structure to offer a more stable and transparent milk price to Skelmersdale’s supplying farmers. Starting November 1 2025, farmers will have the option to choose between a newly calculated Müller Direct Skelmersdale price or an ingredients-only price. This change is expected to provide more predictable and higher returns for farmers, fostering a more sustainable supply chain.

The investment in Skelmersdale underscores Müller’s commitment to enhancing the British dairy industry and reflects the growing demand for high-quality dairy products. By increasing production capacity and improving relationships with local farmers, Müller is positioning itself to capitalise on emerging market opportunities while contributing to the stability of the dairy supply chain.

Rob Hutchison, CEO of Müller Milk & Ingredients, commented: “...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".

He continued: “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.”

Daniel Zeichner, Minister for Food Security and Rural Affairs, echoed this sentiment, adding: “With greater capacity new growth opportunities will be opened for the site’s supplying farmers along with new job opportunities for the local community. This is a key example of the government’s Plan For Change in action, unlocking investment for businesses in the UK resulting in growth that’s securing real opportunities for people in our country”.

The completion of the investment is expected by the end of 2026, marking a significant step forward for Müller and the broader UK dairy landscape.