NFU Scotland has welcomed Müller UK & Ireland’s announcement of a £45 million investment in its Skelmersdale site, describing it as a positive step for the sector.
The announcement also includes contractual changes for those Scottish dairy farmers supplying the former Yew Tree site. Negotiations by Yew Tree producer representatives will see the new contract take effect from 1 November 2025, rather than 1 January 2026. While the contract marks an improvement for most producers, it will still leave them receiving a price that is likely to be significantly below the national average.
For NFU Scotland, the plight of Scottish dairy farmers on Yew Tree contracts - who have endured some of the lowest milk prices in the industry - has been a long-standing concern and a priority issue. The Union has repeatedly raised the alarm about the unsustainable pricing model and the pressures it places on farm viability and farmer wellbeing.
NFU Scotland Milk Committee Chair Bruce Mackie said:
“At a time when many milk producers in Scotland have experienced welcome price and market stability, those supplying under Yew Tree contracts have been left behind, struggling to survive on a milk price that is both unprofitable and unsustainable.
“The average milk price in Scotland hides a stark inequality. The gap between the highest and lowest-paid producers is now over 16p per litre, with Yew Tree suppliers persistently anchored at the bottom. This is unacceptable and has pushed several businesses to the brink, both financially and mentally.
“While Müller’s planned investment at Skelmersdale and the introduction of revised contracts from November represent steps in the right direction, the timeline offers little immediate relief to those already under immense strain. We welcome progress but stress that urgent interim price increases should be considered.”
NFU Scotland President Andrew Connon, who wrote directly to Müller’s UK CEO in June seeking a meeting on this matter, added:
“We’ve made it clear to Müller that change is needed, not only to support Scottish Yew Tree suppliers but to provide clarity on the company’s future commitment to its Scottish milk field. To date, we have received no reply to our letter or request for dialogue. That silence is disappointing.
“Yew Tree suppliers are family farming businesses currently on the bottom rung that deserve to hear vision and ambition from Müller UK & Ireland on their route to a profitable milk price. It is in all our interests that all producer suppliers are confident of a future in milking cows and I would wish to discuss with Müller UK & Ireland its plans to engage constructively and work with the sector to build a sustainable future for Scottish dairy.
“Scottish farms offer processors like Müller UK & Ireland strategic advantages in climate resilience and biosecurity, especially during prolonged drought and climate instability. These contributions to national food security must be recognised more directly in the milk cheque.”
With the new Fair Dealing legislation on milk contracts now in place, NFUS is also calling on major processors like Müller to show industry leadership by offering fair contracts across all their farmer suppliers.
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Contact Carly Ross on 07860 642826