Müller UK & Ireland is set to make a significant investment in the liquid milk and milk powders plant acquired with last year’s purchase of Yew Tree Dairy.
The subsidiary of Germany-based Unternehmensgruppe Theo Müller announced it will inject £45 million ($60.2 million) into the Skelmersdale site in West Lancashire. This strategic decision aims to enhance liquid milk production capacity and establish a flagship facility for milk drying.
Notably, this expansion will increase powdered milk production capacity by 30%, positioning Müller as a leading producer and exporter of British-made powdered milk products. This initiative will also unlock new growth opportunities for local farmers supplying milk to the site.
Furthermore, Rob Hutchison, CEO of Müller Milk & Ingredients, emphasized the importance of enhancing milk balancing capabilities, especially following the record high milk production achieved during the 2025 spring flush.
The investment project is anticipated to be completed by the end of 2026.
Müller received approval to acquire Yew Tree Dairy from the UK’s Competition and Markets Authority (CMA) in October. This acquisition focuses on milk powders, bulk cream, and raw liquid milk sales across the UK and Europe.
“At the time of the acquisition, we made it clear that we wanted to 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,” Hutchison stated.
In addition, this investment will create approximately 40 new jobs at the Skelmersdale site, contributing to the growth of the local economy.
A spokesperson for the dairy group refrained from disclosing further details regarding the investment for commercial reasons but confirmed that the current staff count at Skelmersdale stands at around 200.
Moreover, Müller is launching a “long-term” initiative to support the farmers supplying milk to Yew Tree Dairy. This includes the “Müller Advantage” incentive scheme aimed at equipping farmers with knowledge and skills to effectively address responsible sourcing, cow health, and environmental concerns.
In exchange, Müller intends to offer an updated contract designed to provide “more stable milk prices and further transparency,” enhancing the overall sustainability of the supply chain.
Müller Expands Investment in Yew Tree Dairy Facility
