Muller has announced a £45m investment in its Skelmersdale site, marking a major upgrade aimed at boosting production and strengthening ties with farmers.
The move follows the dairy processor's acquisition of Yew Tree Dairy in October 2024 and is part of its broader strategy to expand its presence in the UK dairy sector.
The investment will significantly enhance liquid milk processing capacity at the West Lancashire facility and establish a leading milk drying operation.
Once complete, Skelmersdale is set to become one of the UK’s largest and most flexible milk balancing facilities.
The expansion will increase powdered milk output by 30%, positioning Muller as a key exporter of British-produced powdered milk.
The additional drying capacity is also expected to improve the company’s ability to manage seasonal surges in milk supply—particularly following record on-farm production during the 2025 spring flush.
As part of its wider growth plan, the dairy processor is also investing in its relationships with supplying farmers.
A core element of this is the introduction of the Muller Advantage programme, which supports best practices in areas such as responsible sourcing, animal welfare, and environmental sustainability.
To complement the initiative, Muller will introduce a revised pricing structure designed to offer greater stability and transparency.
From 1 November 2025, suppliers will have the option of adopting the new Muller Direct Skelmersdale price, calculated using a combination of the company’s liquid and ingredients prices based on published global indices.
Farmers can also choose to continue with the existing Muller Ingredients pricing model.
Rob Hutchison, CEO of Muller Milk & Ingredients, said: “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.
“With significant investment in the Skelmersdale site, its people and supplying farms, we are creating exciting new opportunities for the whole supply chain."
Daniel Zeichner, Minister for Food Security, also welcomed the move: “We are proud that global brands such as Müller see the UK as a great place to produce quality food and drinks.
“With greater capacity, new growth opportunities will be opened for the site’s supplying farmers along with new job opportunities for the local community."
