Monday 26th Sep 2016 - Logistics Manager

Müller to restructure Scottish dairies

Dairy group Müller has set out plans to reorganise its business in Scotland that could have implications for its logistics operations.

As part of a ‘strategic review’, Müller has launched a 45-day consultation to ‘examine the potential winding down’ of milk processing at its Aberdeen and East Kilbride dairies. It has also proposed the investment of £15million over three years in its largest fresh milk dairy at Bellshill.

Müller has said that its network of distribution depots in Scotland isn’t under review, but that some roles at the Aberdeen depot will fall under consultation.

According to the dairy producer, which acquired Dairy Crest’s milk business in December 2015, both the Aberdeen and East Kilbride sites are operating below full utilisation – with over 60 per cent of the capacity at Aberdeen left unused.

“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,” said Andrew McInnes, managing director of Müller Milk & Ingredients. “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.”

If the Aberdeen and East Kilbride dairies are closed, 229 posts will be impacted across the two sites.

“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,” he said.

Müller said no decisions will be made until the consultation period is over.