Muller announces additional investment in the UK coupled with plans to expand both domestic and export demand for British Dairy Products

Muller has announced further plans to bolster its range of products with increased production of extended life milk products at its Droitwich factory in addition to expanding its UK butter manufacturing and upgrading its yoghurts & desserts facilities at Market Drayton.

This is part of a 5-year investment with the clear focus on both the UK domestic market, including displacing imports, as well as exporting British Dairy products to the EU and beyond.

Mullers track record on not only achieving but more recently smashing its medium-term plans is recognised by most.  Back in February 2019 its restructuring project, code named Darwin, to eliminate £100 million of cost saving within the business in only 2 years was met with the rolling of some eyes.  Darwin achieved its goal in less than 2 years cutting costs in logistics, back office, processing with even some loss-making customers told to step up or they would feel the axe.  In addition, its Foston processing site was one of three it closed, plus Muller closed five of its depots.

From that project Muller reversed a loss-making liquid business into a more sustainable profitable business in the 2-year period and are now able to look forward with confidence. 

 

Muller processes in excess of 50% of GB liquid milk output and was arguably one of the first liquid processors to put a stop to chasing unprofitable capacity and redirect milk to alternative outlets and explore alternative opportunities for farmers milk.  In fact, during 2019 Muller boldly declined to tender for some contracts which were either small and uneconomical or focussed solely on ppl. 

“If you won’t pay we will take it away” could easily be a strapline from Muller to its customers and long may this sea change in attitude continue and hopefully its contagious.

 

Theo Muller employs around 7500 people in its UK & Ireland arm (Europe wide 31,000) processing milk from 1,300 British Dairy Farms.  Today’s emphasis on Mullers ability to access both International and UK opportunities should be a very encouraging sign to its farmer suppliers especially given the quote from its GB Milk & Ingredients CEO “We know that farmers want partnerships they can rely on through thick and thin, offering a competitive milk price and contract. We offer this, real resilience and crucially our ambition is backed by investment in our capabilities”.

Muller face the same challenges as all UK processors how to ensure security of milk supply and figure out what’s needed to stimulate existing farmers to expand.  Failure to achieve this goal will  undoubtedly result in Muller opening its recruitment doors as its milk requirements increase.