Müller confirms Yew Tree Dairy acquisition

The leading dairy brand, which has operations in Market Drayton,Telford and Minsterley, will use Yew Tree Dairy’s production capabilities for milk powder to grow its export business, drive supply chain resilience and secure a positive future for the British dairy industry.

Completion of the deal is expected later this year subject to approval from the Competition and Markets Authority.

Once completed, Müller plans to significantly invest in the capacity and capabilities of Yew Tree's Skelmersdale milk drying site.

Tapping into internal expertise and experience from across the Müller group, the business will enhance its milk drying capability, enabling it to become a major producer and exporter of powdered milk products made in Britain, with milk from British dairy farms.

The acquisition will benefit customers, consumers, suppliers and employees of both businesses, while offering supplying farmers enhanced opportunities and long-term security.

Rob Hutchison, CEO at Müller Milk & Ingredients 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.

“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.”

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 Müller of the Skelmersdale operation. The family felt the time was right to explore new opportunities whilst retaining our farming roots.

“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.

“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, Müller was our clear preference, and we leave our business in really good hands.”

NFU dairy board chair Paul Tompkins said: "It’s positive to see further long-term commitment and investment in the UK dairy sector by another dairy processor, demonstrating the potential and opportunity for growth in British dairy, especially when it comes to export potential. Although further consolidation within the industry, amongst both producers and processors, remains a concern.

"The NFU is aware that around 450 producers will be affected by this deal. It is vital that these producers are kept fully informed of the situation and receive regular updates as the acquisition progresses to ensure any impact on their farms and businesses is fully understood.

"We will be seeking meetings with both Müller and Yew Tree in the coming weeks to understand further how this deal will affect NFU dairy farmer members."