Dairy farmers supplying Müller Milk & Ingredients on the Skelmersdale contract have warned that current milk prices are leaving businesses unable to cover their costs, with NFU Scotland calling for immediate action.
The union raised concerns directly with Müller Milk & Ingredients chief executive Rob Hutchinson and agriculture director Richard Collins during a recent meeting.
NFU Scotland dairy chair Bruce Mackie said farmers supplying the Skelmersdale contract were facing an increasingly difficult financial position, with the milk price currently around 28p per litre before transport costs.
He said an expected milk price increase for September was welcome, but warned it must be the start of a sustained improvement.
“The current situation cannot continue,” Mr Mackie said.
The meeting gave NFU Scotland representatives an opportunity to hear Müller’s position on market conditions, production levels and future investment plans, while the union outlined the pressures being faced by Scottish producers.
Mr Mackie said the prolonged period of low returns was putting significant pressure on otherwise well-run and well-invested family farms.
“While the expectation of a milk price increase for September is welcome, it must mark the beginning of meaningful and sustained improvement, not the end of the conversation,” he said.
The financial pressure is also affecting farmers’ ability to invest in their businesses, while concerns have been raised over health and safety, mental wellbeing and whether younger generations will see a future in dairy farming.
Müller acknowledged the concerns during the discussions and outlined plans for continued investment at its Skelmersdale site, including further development of powder and ingredient processing capacity.
Producer meetings are also planned for October.
However, NFU Scotland said investment plans stretching into 2027 offered limited reassurance to farmers dealing with the financial pressures they face now.
Mr Mackie said: “These are farmers who have invested heavily in their businesses, maintained high production standards and continued supplying Müller through an exceptionally challenging period.
“They need a milk price that reflects the cost of production and provides confidence that their businesses, and the next generation, have a viable future.”
The concerns echo those raised recently by a Skelmersdale dairy farmer in a letter published by The Scottish Farmer , who warned of the difference between managing the normal fluctuations of farming and consistently producing milk for less than it costs to produce.
One young Skelmersdale producer also wrote to NFU Scotland president Andrew Connon and the Milk Committee, calling for immediate action.
“We need things to change now, not in six months, not in five years, but now,” the farmer said.
NFU Scotland said it would continue discussions with Müller on behalf of affected producers and work with farmers ahead of the October meetings.
Mr Mackie said: “The message remains clear: farmers need meaningful change, fair returns and confidence in the future of their businesses.”
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