Müller acquires Yew Tree Dairy to boost milk powder export business

GERMANY – Müller, a prominent German dairy processor, has announced the acquisition of Yew Tree Dairy, a family-owned UK company based in Skelmersdale, Lancashire, for an undisclosed amount.

This strategic acquisition aims to bolster Müller’s position in the global milk powder market and enhance its supply chain resilience.

Yew Tree Dairy, established in 1904, has a long history of producing fresh milk and cream. In recent years, following significant investments, the company expanded into milk powder production.

Müller’s acquisition plans include further investment in the Skelmersdale site, transforming it into a leading producer and exporter of powdered milk products in Britain.

Rob Hutchison, CEO of Müller Milk & Ingredients, expressed confidence in the acquisition, stating, “Yew Tree Dairy’s exceptional processing capabilities and experienced team are a great match for our network. Together, we can capitalize on the growing global demand for dairy products, creating new export opportunities and strengthening our supply chain resilience.”

The acquisition will enhance Müller’s milk drying operations, positioning the company as a major player in exporting British-made powdered milk products.

Carl Woodcock, Director at Yew Tree Dairy, shared the rationale behind the sale, stating, “After over a century in the dairy business, we felt it was the right time to explore new opportunities while maintaining our farming heritage.”

“Meeting with the Müller family reassured us that this decision will benefit our staff, farmers, and customers as we enter the next growth phase,” he added.

The acquisition is pending approval from the UK’s Competition and Markets Authority (CMA). This move will significantly impact the global dairy market if approved, particularly in milk powder exports.

This acquisition follows Müller’s decision in November to divest its UK milk delivery service, Milk & More, to Freshways, another local dairy group.

Müller had initially acquired Milk & More as part of its purchase of Dairy Crest’s wider liquid milk processing and distribution operation in 2016.

 However, following a strategic review, Müller decided to offload Milk & More, which delivered products including fresh milk, bread, and eggs and employed 1,100 people.

Müller’s strategic acquisition of Yew Tree Dairy and the divestment of Milk & More reflect the company’s focus on optimizing its operations and expanding its global footprint in the dairy industry.

The move is expected to create new opportunities for growth and innovation, benefiting both companies’ employees, suppliers, and customers.

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