Müller has today (Wednesday, June 5) announced its acquisition of Yew Tree Dairy, a family-owned dairy company based in Skelmersdale, West Lancashire.
Completion of the deal is expected later this year subject to approval from the Competition and Markets Authority (CMA).
Yew Tree Dairy produces fresh cream and milk, and Müller said its production capabilities for milk powder will help grow its export business.
Once the deal is completed, Müller plans to significantly invest in the capacity and capabilities of the Skelmersdale milk drying site.
The acquisition will benefit customers, consumers, suppliers and employees of both businesses, while offering supplying farmers enhanced opportunities and long-term security, Müller said.
Chief executive at Müller Milk & Ingredients, Rob Hutchison, said: “This significant investment in the British dairy industry underlines our ambition to grow Müller and build a better future for the sector.
“Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with its customers and supplying farms.
“When combined with our well-invested and resilient network, I am very confident that these two family-owned businesses will complement each other really well.”
Hutchison said Britain is a great place for dairy farming and has an excellent reputation for quality, welfare standards and sustainability.
“This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience.”
‘The time was right’
Carl Woodcock of Yew Tree Dairy said the family felt “the time was right” to explore new opportunities while retaining their farming roots.
“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 Müller of the Skelmersdale operation,” he said.
“We would like to thank all who have been involved in the Yew Tree Dairy business over the years. Our success is in no small part due to our dedicated staff, farmers and customers that have been part of our journey.
“We have known Rob and the team from Müller for many years. After meeting with the Müller family, we feel confident that this is the right decision for the business to be part of a larger organisation for the next phase of growth that will benefit our staff, farmers, and customers in the longer term.”
Woodcock said the key was for the family to find a buyer that shared their values and had an exciting vision for the future of the great British dairy industry.
“Following a competitive process, Müller was our clear preference, and we leave our business in really good hands,” he said.
‘Significant number’ of dairy farmers affected
The National Farmers’ Union of Scotland (NFUS) has said that around 100 Scottish dairy farming suppliers will be affected by the acquisition.
NFUS 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,” he said.
“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 Müller and Yew Tree. Members of the Milk Committee have had dialogue with Yew Tree representatives in recent months and we are schedule to meet Müller 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.”
Mackie said the union is also seeking more information on the planned investment by Müller 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.
“On behalf of affected milk producers, we will be looking to the companies to quickly set up support helplines and producer meetings to answer the many questions that affected dairy farmers will have.
“A sudden change in milk purchaser and contractual arrangements is always a time of worry.
“Many will also point to Müller’s decision to walk away from Aberdeenshire in 2019 and we will be seeking cast iron reassurances on its commitment to producers in that area who are now supplying Yew Tree.
“If NFU Scotland or the Scottish Dairy Hub can assist any affected producers, then we urge them to get in touch.”
