Yew Tree Dairy acquired by industry rival Muller

Major milk processor Muller has confirmed to Farmers Weekly it has acquired Lancashire-based competitor Yew Tree Dairy.

The deal is still subject to checks by the Competition and Markets Authority, which are due to be completed later this year.

If approved, Muller plans on investing in the site in Skelmersdale, West Lancashire, which currently produces fresh milk, cream, and milk powders.

See also: Milk prices rise above 40p/litre as volumes fall

Muller, which already works with about 1,300 British dairy farmers, intends to expand the site’s milking drying operations and focus on growing its export business for milk powders.

Rob Hutchison, chief executive at Muller Milk and Ingredients, said: “This significant investment in the British dairy industry underlines our ambition to grow Muller and build a better future for the sector.

He added: “This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience.”

Carl Woodcock from Yew Tree Dairy said: “We as a family are very proud of the dairy business we have built and are looking forward to seeing the progression and development by Muller of the Skelmersdale operation.

“The family felt the time was right to explore new opportunities while retaining our farming roots.”

Mr Woodcock concluded: “The key for us was to find a buyer that not only shared our values, but had an exciting vision for the future of the great British dairy industry.

“Following a competitive process, Muller was our clear preference, and we leave our business in really good hands.”

NFU Scotland milk committee chair, Bruce Mackie said: “This is a major rationalisation within the dairy sector and will affect a significant number of dairy farmers across Scotland.

“In the last few hours, five Yew Tree suppliers have already contacted the union.

“Any contraction in the number of available milk purchasers is clearly a concern as competition for milk, particularly in more remote milk fields, is an important factor in not only securing a fair price but maintaining dairy production in all parts of Scotland.

“We have a good working relationship with both Muller and Yew Tree.

“Members of the milk committee have had dialogue with Yew Tree representatives in recent months and we are scheduled to meet Muller in the next few days.

“That will allow us to seek clarification on contractual and collection arrangements as well as a timescale for the change taking place.

“We would also seek more information on the planned investment by Muller in the Yew Tree site at Skelmersdale and whether that brings opportunities for Scottish milk.

“What we do know is that affected producers will be issued with new contracts and that these will be amongst the first to be issued under the new statutory arrangements for milk contracts, recently agreed by parliament and which come into force across the UK in July.”