UK – German dairy company, Müller Group has announced investment in UK business to enhance production at its plants in Shropshire and Worcestershire in a bid to help boost opportunities for its farmer suppliers.
Muller is focusing on creating new opportunities for British dairy farming and expanding domestic and international demand for its dairy products.
The dairy giant is upgrading its Market Drayton facility in Shropshire over the next five years.
Droitwich dairy facility is being modernized to strengthen its range of extended shelf-life milk products as well as expand its UK butter manufacturing capabilities.
Meanwhile, Müller is also installing new automated packing and repacking lines, a refurbished high bay warehouse, and combined heat and power energy generation, which will help reduce carbon.
This comes after many dairy companies are shifting to carbon zero milk products to help in environmental conservation and advocating for a clean energy production system.
Rob Hutchison, joint chief executive officer of Muller said: “We know that farmers want partnerships they can rely on through thick and thin, offering a competitive milk price and contract, and supporting their ambitions to develop and grow their businesses. “
We aim to build on this, broadening our reach in the UK and internationally and as a result, benefitting the whole supply chain. “
Muller is sourcing milk from about 1,600 farmers in Britain to manufacture its wide range of products for the UK.
Despite Muller’s investment, there is pressure in the UK dairy market as dairy farm costs of production are continuing to rise considerably in the recent months.
According to Kite Consulting, these increases come from increased feed, fuel, and fertilizer costs, as well as higher labor costs due to strong wage inflation.
As a result, the consultancy firm notes that milk supply will come under significant pressure if milk buyers don’t maintain price increases ahead of the inflationary curve, as farmers are losing confidence.
The price of four pints of milk could rise from £1.15 (US$1.21) to between £1.60-£1.70(US$1.69-US$1.79) as the dairy industry announced it was ” calling time on cheap milk” after farmers have been facing squeezed milk prices for years.
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