Milk supplier and distributor Müller has acquired family-owned Yew Tree Dairy for an undisclosed sum. Müller aims to use Yew Tree Dairy’s production capabilities for milk powder to expand its export trade and strengthen its supply chain.

The deal will be completed later this year with the approval of the Competition and Markets Authority. Müller plans to increase investment in Yew Tree’s Skelmersdale milk drying site once the acquisition is complete.

According to official nclick="updateothersitehits('Articlepage','External','OtherSitelink','Müller ramps up milk powder export with Yew Tree Dairy acquisition','Müller ramps up milk powder export with Yew Tree Dairy acquisition','341339','https://commonslibrary.parliament.uk/research-briefings/sn02721/#:~:text=The%20UK%20is%20the%20thirteenth,2020%2C%20a%2028%25%20reduction', 'article','Müller ramps up milk powder export with Yew Tree Dairy acquisition');return no_reload();">data, the UK is the thirteenth-largest milk producer in the world, with over 14.9 billion liters of milk produced in the region between 2022 and 2023. The total number of UK dairy cows has fallen from 2.6 million in 1996 to 1.9 million in 2020, with government statistics reporting a 28% reduction.

Dairy farming in the UK
The family-owned dairy company is known for fresh milk and cream. With increased investment in recent years, it specializes in milk powder production.

With this acquisition, Müller is strategically enhancing its milk drying capabilities and positioning itself to become a significant producer and exporter of powdered milk products made in Britain, with milk from British dairy farms.

Rob Hutchison, CEO at Müller Milk & Ingredients, says: “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, director of Yew Tree Dairy, adds, “We 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 while retaining our farming roots.”

“We feel confident that this is the right decision for the business to be part of a larger organization for the next phase of growth that will benefit our staff, farmers, and customers in the longer term.”

Yew Tree was founded in 1904 and had been looking for a big buyer that could drive businesses forward. The dairy farm cooperates with farmers in North West England and Scotland, making it a direct competitor to Müller.