An unprecedented 25% surge in Scottish milk production has led Muller to reduce the overall volume purchased in Scotland.
The dairy processor's 230 Scottish suppliers have cumulatively increased production since 2014 by the equivalent of 33 litres of additional milk per annum for every person in Scotland.
It says this is 'substantially in excess of local demand' for fresh milk from consumers.
Surplus milk is currently being transported by Müller to England where markets can be found for it, resulting in more than 6,000 tanker movements travelling a total of 2.5 million miles.
Measures to be introduced by the firm iclude a reduction in the overall volume of milk purchased in Scotland.
This will be achieved by serving a full year’s notice on a number of dairy farm suppliers in the North East of Scotland, the processor says.
Müller will also introduce a tiered transport charge for dairy farmer suppliers in Scotland from February 2020 with the fastest expanding dairy farmers shouldering a proportionately higher charge than those who have grown production more modestly.
Rob Hutchison, Milk Supply Director for Müller Milk & Ingredients said: “We fully appreciate that these measures will be extremely unwelcome and destabilising for our farmer suppliers particularly in the North East of Scotland, but the current situation is unviable and we must act.
“But with fresh milk already in 96% of the nation’s fridges and overall consumer demand for the product in marginal decline, the reality is that it is extremely unlikely that this sector will soak up the heightened levels of milk production from farms which we have seen.
“Our farm services team will now work closely with affected dairy farmers and we will do everything in our power to help them adjust to the changes which we must now make.”
