NFU 'monitoring' Muller's acquisition of Yew Tree Dairy

It is understood that around 450 farmers will be affected by Muller's acquisition
It is understood that around 450 farmers will be affected by Muller's acquisition

The NFU has said it is 'monitoring' the acquisition of Yew Tree Dairy by Muller and has urged the milk processor to ensure farmers are 'fully informed'.

Muller's acquisition of the Lancashire-based family firm was approved by the Competition and Markets Authority (CMA) in late October.

The acquisition, first announced in June, will see the processor use Yew Tree's milk powder production capabilities to grow its exports.

Muller said the move showed its "commitment to a better dairy future", which would allow it to further invest in the UK dairy industry.

It is understood there will be no immediate changes to existing milk collections and the Yew Tree contracts and payment terms will remain the same.

But the NFU said it was "vital that farmers are continued to be kept fully informed" and that they "receive regular updates to ensure any impact on their farms is fully understood".

"We are aware that the Muller takeover of Yew Tree Dairies has been officially approved by the Competition and Markets Authority," said NFU dairy board chair, Paul Tompkins.

“It's positive to see further long-term commitment and investment in the UK dairy sector by another dairy processor, demonstrating the potential and opportunity for growth in British dairy, especially when it comes to export potential."

Muller said it was committed to meeting farmers who supply to Yew Tree Dairy and will arrange meetings in the coming weeks.

It is understood that around 450 dairy producers will be affected by this deal.

Rob Hutchison, Muller Milk & Ingredients CEO said: “We will take time to understand the business and we are planning to invest significantly in the milk drying capability and capacity.

“We aim to become a major producer and international exporter of powdered milk products made in Britain, with milk from British dairy farms.

"For you as a supplier to this site this is good news and we want a long term milk supply going forward.”

The NFU said it would continue to monitor the acquisition and support affected farmers.