Oversupply of milk in Scotland is 'not sustainable', Muller warns

Müller has confirmed a review to tackle the growing milk surplus in Scotland
Müller has confirmed a review to tackle the growing milk surplus in Scotland

The ongoing oversupply of milk in Scotland has triggered a warning from Müller that the situation is 'not sustainable' and has 'significant environmental consequences'.

Dairy processor Müller Milk & Ingredients highlighted its concerns following a 25 percent surge in milk supplied to the company.

It says such an increase is 'not sustainable' as it is not supported by growth in demand for fresh milk products in Scotland.

The processor has confirmed a review with its 230 dairy farmer suppliers to address the issue both 'short term and strategically'.

Rob Hutchison, Milk Supply and Operations Director, said: “Fresh milk is loved and in 96% of the nation’s fridges, but consumption is marginally down year-on-year.

“Production from Scottish farms who supply us however is up by 25% since 2014.”

As a result, Müller is transporting 180 million litres per annum – equivalent to 33 litres of additional milk for every person in Scotland - to its dairies in England.

“The financial and environmental cost of moving this volume of milk is substantial and we must work urgently with farmers who supply us,” Mr Hutchinson urged.

The business will discuss the issue over the next month with the Müller Milk Group, the elected farmer board which represents dairy farmer suppliers to the company.

Müller said it will determine measures to be taken once the review period is complete.

Last month, the processor was forced to shut down its Aberdeen depot over what it says is the 'declining consumption of fresh milk'.