Producer meetings are planned for October as pressure continues over Skelmersdale milk prices
Dairy farmers supplying MĂĽller under its Skelmersdale milk contract are receiving around 28p per litre before transport costs, prompting NFU Scotland to call for urgent action on returns.
The Skelmersdale arrangement covers farmers supplying Müller’s operation at the former Yew Tree Dairy site, including Scottish producers. Revised contracts for those suppliers took effect in November 2025.
NFU Scotland said the current milk price is leaving affected farmers unable to cover their cost of production and warned the situation cannot continue.
The union raised the concerns during a recent meeting with MĂĽller Milk & Ingredients chief executive Rob Hutchinson and agriculture director Richard Collins.
Discussions covered market conditions, milk production and Müller’s future investment plans, as well as the financial pressures facing Scottish suppliers.
NFU Scotland has welcomed an expected milk price increase for September, but said it must mark the beginning of sustained improvement rather than the end of discussions over returns.
Bruce Mackie, chair of NFU Scotland’s Milk Committee, said producers were facing more than the normal fluctuations associated with dairy farming.
The union argues there is a significant difference between managing routine market volatility and continually producing milk for less than it costs to produce.
NFU Scotland said prolonged low returns are putting family dairy businesses under growing financial pressure, forcing some producers to cut costs and delay investment.
It has also raised concerns about the potential impact on health and safety, farmers’ mental wellbeing and whether the next generation will see a viable future in dairy farming.
MĂĽller outlined plans during the meeting for continued investment at Skelmersdale, including further development of powder and ingredient processing capacity.
Producer meetings are also planned for October.
NFU Scotland said investment in the site was important, but argued that plans stretching into 2027 offered limited reassurance to farmers struggling with current returns.
The contrast between longer-term investment and immediate farm finances was highlighted by a young Skelmersdale supplier in a letter to NFU Scotland president Andrew Connon and the Milk Committee.
The farmer said: “We need things to change now, not in six months, not in five years, but now.”
NFU Scotland said the comment reflected the frustration among producers who have invested heavily in their farms and maintained milk production despite sustained pressure on margins.
The union is calling for a milk price that better reflects production costs and gives farmers greater confidence in the long-term viability of their businesses.
The Skelmersdale contract has previously been a focus for NFU Scotland. In July 2025, the union said farmers supplying the former Yew Tree site had experienced some of the lowest milk prices in the industry, although it welcomed revised contractual arrangements and Müller’s planned investment in the plant.
NFU Scotland said it will continue discussions with MĂĽller and work with affected farmers ahead of the October producer meetings, where milk prices and the future of the supply arrangement are expected to remain key concerns.