MP Owen Paterson backs Muller's plans to invest in Shropshire

Mr Paterson met Andrew McInnes, managing director of Muller Milk & Ingredients, who said the firm wants to keep expanding its business in the UK.

Last year the firm revealed plans to invest £100 million in its business as it looks to tap into huge growth in its markets.

The investment will include upgrades to its existing production facilities at both its Yogurt & Desserts and Milk & Ingredients businesses.

The yoghurts and desserts division is centred on Shropshire, and has four major production facilities in the county. Those include its headquarters at Market Drayton, a butter factory next door, the former Nom Dairy in Telford, which is used to make supermarket-branded yoghurts, and a desserts facility at Minsterley, where it makes Cadbury's products under licence.

At the meeting in Oswestry on Friday, Mr McInnes also told the MP about the opportunities post-Brexit provides for local suppliers.

Mr Paterson said: "It was a really interesting meeting.

"He sees post-Brexit as an excellent opportunity in terms of import substitution which was one of the themes when I was working at Defra.

"It provides an opportunity for local producers to step in and replace what might be high price continental suppliers.

"They want to increase production across the board for UK producers.

"It will hopefully lead to an increase in demand and jobs in the UK dairy industry.

"They have incredible plans to keep expanding all of their branches. In Shropshire, they want to expand their Telford plant."

One of the topics discussed at the meeting was about low milk prices, which has been a big issue for farmers across the region.

And dairy farmers received a fresh blow recently after Muller said it was to cut the price it pays farmers for milk after the long-awaited rebound in the value of dairy produce ground to a halt.

The yoghurt and butter maker cut its standard price by 0.5p per litre to 26.19p from Friday.

"I raised the case about farmers. What they want is stable, loyal suppliers," Mr Paterson added.

Muller's investment, which is on top of its usual spending, will cover its operational, innovation and marketing capabilities.

The firm says it sees £700 million worth of growth in the dairy produce sector by 2020, and believes the investment will help it tap into that.

Muller confirmed that the meeting took place between the two on Friday, but didn't wish to comment any further.