Müller Milk & Ingredients (MMI) has launched a £100m cost and margin improvement programme called Project Darwin to transform its fresh milk business.

The project will review MMI’s operations, logistics and administrative organisation to simplify the business, cut costs and improve customer focus and accountability.

MMI CEO Patrick Müller said: “Fresh milk is loved by British families with 96% of UK households having milk in their fridges.

“But the market environment has changed significantly due to global dairy market volatility, the decline in consumption and changes in retailing and we need to adapt and return to sustainable levels of profitability so that fresh milk can continue to be part of the fabric of British life.”

“The market environment has changed significantly due to global dairy market volatility, the decline in consumption and changes in retailing.”

The 12-month cost and margin improvement programme is already underway, assessing manufacturing, logistics, products, procurement, people and customer relationships. It is expected to help create a sustainable future for the business while benefiting consumers, customers, employees and farmers.

Müller further added: “Project Darwin is about adapting to the changing market environment, becoming a customer-centric, agile and simpler business.

“This transformation programme will inevitably require tough decisions and a great deal of change but when Project Darwin succeeds, consumers, customers, employees and farmers will benefit, and we can again look forward to a vibrant and progressive future.”

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In December 2018, Müller completed a £15m project to substantially upgrade its Scottish fresh milk dairy in Bellshill. This project secured 265 jobs.