Muller conducts review amid growing Scottish milk surplus

DAIRY: Company says situation is not sustainable

Muller Milk & Ingredients has announced a review of its operations amid concerns of a growing milk surplus in Scotland.

The dairy giant has warned its 230 Scottish farmer suppliers that a 25% surge in farm milk production is not supported by growth in demand for fresh milk products in Scotland.

Muller says the increased production is not sustainable and has significant environmental consequences, with almost 200 million litres of fresh milk sent south for processing each year due to a lack of market for it in Scotland.

“Fresh milk is loved and in 96% of the nation’s fridges, but consumption is marginally down year on year,” said Muller’s milk supply and operations director, Rob Hutchison.

“Production from Scottish farms who supply us, however, is up by 25% since 2014. As a result, Muller is transporting 180m 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.”

He said the financial and environmental costs associated with moving this volume of milk were substantial.

“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,” added Mr Hutchison.

He said measures to resolve the problem will be announced once the review period is complete.

NFU Scotland’s milk committee chairman, John Smith, said: “This announcement will be a real concern for all Muller producers in Scotland.

“Officeholders and policy staff at NFUS have already taken a number of calls from worried members.”

He said the union would seek a discussion with Muller to seek a better understanding of the firm’s supply strategy for Scotland.

Milk consumption is marginally down year on year