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Müller confirms review to tackle growing milk surplus in Scotland

Press release   •   Sep 30, 2019 14:40 BST

Leading fresh milk processor Müller Milk & Ingredients has warned Scottish dairy farmers who supply the company that a 25% surge in farm milk production which is not supported by growth in demand for fresh milk products in Scotland, is not sustainable and has significant environmental consequences.

The family owned dairy business, which last year completed the single largest investment in fresh milk processing in Scotland in more than a decade at its dairy at Bellshill, has confirmed a review with its 230 dairy farmer suppliers in Scotland to address the issue both short term and strategically.

Rob Hutchison, Milk Supply and Operations Director at Müller Milk & Ingredients said:

“Fresh milk is loved and in 96% of the nation’s fridges[i], 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 our dairies in England, where we can find a market for it.

“The financial and environmental cost of moving this volume of milk is substantial and we must work urgently with farmers who supply us and other industry stakeholders to review a range of measures to address this increasingly unsustainable situation both in the short and longer term.”

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, and will also seek views from other industry stakeholders. Müller will then determine measures to be taken once the review period is complete.

[i] Dairy UK – see https://www.dairyuk.org/the-uk-dairy-industry/

Müller UK & Ireland is wholly owned by Unternehmensgruppe Theo Müller which employs 24,000 people throughout Europe. In the UK, Müller develops, manufactures and markets a wide range of branded and private label dairy products made with milk from more than 1,650 British farmers.

The Müller brand is ranked at No.9 in The Grocer’s Top 100 list of Britain’s Biggest Brands, and is also the 8th most chosen brand in the UK, picked from shelves more than 217 million times each year. Müller UK & Ireland comprises three business units:

Müller Milk & Ingredients is Britain’s largest producer of branded and private label fresh milk, cream, butter and ingredients products, with a network of dairies and depots servicing customers throughout the country.

Müller Yogurt & Desserts is the UK’s leading yogurt manufacturer responsible for major brands like Müllerlight, Müller Corner and Müller Rice. It produces chilled desserts under licence from Mondelez International and supplies the UK private label yogurt market from a dedicated, state of the art yogurt facility.

Milk & More delivers daily essentials to more than 500,000 homes in England, via a network of 53 local fulfilment centres. The milkman is arguably the original home delivery service and Milk & More is ensuring that this great British tradition continues to flourish.

Müller is an Official Supporter of British Athletics and Athletics Ireland. With branding and activation rights for five events in 2019, Müller aims to empower consumers to make active and healthy lifestyle choices.

For further information, see Müller Now, our first ever industry report.