Leading fresh milk processor Müller Milk & Ingredients has warned Scottish dairy farmers who supply the company that a 25% surge in farm milk production which is not supported by growth in demand for fresh milk products in Scotland, is not sustainable and has significant environmental consequences.

The family owned dairy business, which last year completed the single largest investment in fresh milk processing in Scotland in more than a decade at its dairy at Bellshill, has confirmed a review with its 230 dairy farmer suppliers in Scotland to address the issue both short term and strategically.

Rob Hutchison, Milk Supply and Operations Director at Müller Milk & Ingredients said:

“Fresh milk is loved and in 96% of the nation’s fridges[i], but consumption is marginally down year on year. Production from Scottish farms who supply us however is up by 25% since 2014. As a result, Müller is transporting 180 million litres per annum – equivalent to 33 litres of additional milk for every person in Scotland - to our dairies in England, where we can find a market for it.

“The financial and environmental cost of moving this volume of milk is substantial and we must work urgently with farmers who supply us and other industry stakeholders to review a range of measures to address this increasingly unsustainable situation both in the short and longer term.”

The business will discuss the issue over the next month with the Müller Milk Group, the elected farmer board which represents dairy farmer suppliers to the company, and will also seek views from other industry stakeholders. Müller will then determine measures to be taken once the review period is complete.

[i] Dairy UK – see https://www.dairyuk.org/the-uk-dairy-industry/