Müller, the German dairy giant, has acquired Lancashire-based Yew Tree Dairy after the latter reported a £10.2 million ($12.5 million USD) loss for the year ending March 31, 2024. The acquisition, approved by the UK’s Competition and Markets Authority, follows a year of market challenges for Yew Tree Dairy, including declining milk prices and cost pressures. The family-run company, which previously made £5.5 million in profit, has pledged to support farmers throughout these challenges. Müller’s acquisition is expected to help Yew Tree Dairy grow, benefiting its employees, farmers, and the broader British dairy industry.
Lancashire-based dairy company Yew Tree Dairy has been acquired by German dairy giant Müller after reporting a significant pre-tax loss of £10.2 million (approximately $12.5 million USD) in the year ending March 31, 2024. Yew Tree Dairy, a prominent family-owned dairy that has supplied milk and dairy products across the UK for decades, struggled in the last financial year, following a profitable year that saw pre-tax earnings of £5.5 million (around $6.8 million USD).
According to newly filed accounts with Companies House, Yew Tree Dairy’s turnover dropped from £214.5 million ($262.9 million USD) to £181.5 million ($222.6 million USD) during the same period. The acquisition by Müller, a leading milk and yoghurt producer, received final approval from the UK’s Competition and Markets Authority (CMA) in October 2024, solidifying Müller’s foothold in the British dairy market.
Commenting on the acquisition, Yew Tree Dairy director Carl Woodcock expressed pride in the progress made by the family-operated business and optimism for the future under Müller’s ownership.
“As a family-owned and operated company, we’re very proud of the progress we’ve made and the organization we have built over the last few decades,”
Director Carl Woodcock, Yew Tree Dairy
He added that it was essential to transfer ownership to a company that would uphold similar values and support for farmers, staff, and customers.
“Joining Müller will help Yew Tree Dairy go from strength to strength, benefitting our staff, farmers, and customers and creating a strong and successful future for the British dairy industry.”
Director Carl Woodcock, Yew Tree Dairy
The acquisition follows a difficult financial year for Yew Tree Dairy. In its accounts, the company explained that the £10.2 million ($12.5 million USD) loss was “not wholly unexpected” given the cyclical nature of market trends. The company anticipates a return to profitability in the current financial year.
The 2023-24 period saw a contrast in market conditions as Yew Tree Dairy faced the knock-on effects of the high milk prices from the previous year. Farmers increased milk production in 2022-23 to capitalize on elevated prices, leading to a supply surplus and a subsequent drop in milk prices. Combined with persistent cost pressures, this situation led to reduced profit margins across the UK dairy sector.
Throughout these challenges, Yew Tree Dairy remained committed to supporting its farmers, providing subsidies on milk payments despite declining milk prices. To maintain competitiveness, the company has focused on maximizing production efficiencies and reducing supply costs, a strategy that is expected to continue under Müller’s ownership.
