The NFU has stated it is ‘monitoring’ Müller’s acquisition of Yew Tree Dairy and has called on the milk processor to keep farmers ‘fully informed’.

The purchase of the Lancashire-based family business by Müller received approval from the Competition and Markets Authority (CMA) in late October.

Initially announced in June, the acquisition will enable Müller to leverage Yew Tree's milk powder production to expand its export market.

MORE NEWS | Confirmed number of bluetongue cases in GB rises

MORE NEWS | First Minister backs lamb at AgriScot 2024

Müller described the acquisition as a demonstration of its ‘commitment to a better dairy future’, aiming to drive further investment in the UK's dairy sector.

Currently, there are no plans to alter milk collection processes, and Yew Tree’s contracts and payment terms are expected to stay the same.

However, the NFU emphasised that it is ‘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’.

NFU dairy board chair Paul Tompkins said: “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."

Müller has committed to meeting with farmers who supply Yew Tree Dairy and will schedule meetings in the coming weeks.

It’s estimated that approximately 450 dairy producers will be affected by this acquisition.

Rob Hutchison, CEO of Müller Milk & Ingredients, stated: “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 has confirmed it will continue monitoring the acquisition to support impacted farmers.