FDBusiness.com

Müller Milk & Ingredients to Invest £15 Million in Streamlined Scottish Dairies Business

 Breaking News
  • Kerry Group Benefits From Unique Business Model Kerry Group, the global taste, nutrition and consumer foods business, has reported a 3.1% increase in revenue to €6.6 billion for the year ended 31 December 2018, reflecting strong volume growth and contribution from acquisitions, partially offset by adverse currency movements. Business volumes grew by 3.5% and pricing decreased by 0.5% against a backdrop of [...]...
  • Premier Foods Discontinues Ambrosia Sale Process Premier Foods has decided not to proceed with the potential disposal of its Ambrosia brand. A number of parties expressed interest in the business, and since the New Year Premier Foods has been engaged in detailed discussions with a small group of potential buyers. However, the Premier borad has concluded that in the present business [...]...
  • Heineken Maintains Strong Top Line Growth in 2018 Heineken achieved organic net revenue growth of 6.1% to €22.471 billion in 2018, with a 4.0% increase in total consolidated volume and a 2.0% increase in revenue (beia) per hectolitre. Operating profit (beia) rose organically by 6.4% to €3.868 billion but the operating profit margin (beia) slipped by 17 bps to 17.2%. Net profit for [...]...
  • Another Year of Progress For Nestlé Nestlé has reported a 2.1% increase in sales to SFr91.4 billion (€80.6 billion) for 2018 with organic growth of 3% and group RIG of 2.5%, which was at the high end of the food and beverage industry, helped by faster innovation and successful new product launches. 2018 organic growth was supported by stronger momentum in [...]...
  • Fast-growing Asia Maternal Nutrition Market to Boost Demand For Dairy ingredients and Formula Maternal nutrition is a hot new opportunity in emerging markets, according to the latest report from food and drink experts, Zenith Global. In many parts of Asia, the concept of optimal nutrition during the first 1,000 days of a baby’s life (from conception to two years old) is capturing the attention of mothers and their [...]...

Müller Milk & Ingredients to Invest £15 Million in Streamlined Scottish Dairies Business

Müller Milk & Ingredients to Invest £15 Million in Streamlined Scottish Dairies Business
April 04
16:03 2016

Müller Milk & Ingredients has confirmed that it is proposing to invest £15 million over the next three years in Scotland’s largest fresh milk dairy at Bellshill as part of a strategic review of its network of Scottish dairies. The proposed investment at Bellshill will improve efficiencies and competitiveness whilst giving the dairy the capability to broaden the range of products it is able to make with milk produced by Scottish farmers.

Müller is also continuing to investigate further opportunities to grow its business in Scotland as it seeks to build a diverse dairy business in the UK.

As part of the review of the structure of its Scottish dairy network, Müller has confirmed a 45 day statutory consultation to examine the potential winding down of milk processing at its smaller Aberdeen and East Kilbride dairies. Both dairies are operating well below full utilisation with more than 60% of the capacity at Aberdeen dairy unused.

While Müller’s network of distribution depots in Scotland is not under review, some roles at Aberdeen depot will also fall under consultation. A total of 229 posts are affected across the Aberdeen and East Kilbride sites.

During the review period the business will consult with its employees and their representatives at the Aberdeen and East Kilbride sites to fully assess and evaluate the proposal. It should be stressed that no decisions will be taken until the consultation period is complete and the business has had the opportunity to review its findings.

In the event of a decision to wind down processing operations at the Aberdeen dairy, all 43 farmers supplying the site will be offered the opportunity to continue supplying the business, conditional on the acceptance of a 1.75 pence per litre transport charge which reflects the need to move the milk to Bellshill for processing.

Farmers in the area who do not wish to continue supplying Müller in the longer term in the event of the closure of Aberdeen dairy will avoid the transport charge and their contracts will terminate on expiry of the 12 months’ notice, giving them time to make alternative arrangements for their milk production.

Andrew McInnes (pictured), managing director of Müller Milk & Ingredients, says:  “We aim to reinvigorate our fresh milk and ingredients business in Scotland and propose to invest to make Bellshill a centre of excellence for dairy, benefitting consumers, customers, employees and farmers. It is important to stress that the status quo is just not viable in the medium term. Our Scottish dairies are inefficient and costly which is putting a brake on the innovation and investment needed to stimulate new demand for dairy products.”

He continues: “Our Aberdeen dairy is operating at less than 40% of its capacity and milk production from farmers in the North East is far in excess of customer requirements in the area. Our small dairy in East Kilbride makes products including flavoured milks and potted cream and we believe that we can gain important efficiencies by relocating that production to Bellshill, which is nearby. We will enter the consultation with an open mind and will rigorously assess the situation and listen to our colleagues before arriving at a decision.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements