Farmers’ co-operative First Milk has signed a contract with Bibby Distribution worth £50 million to provide a farm collection service in west Wales, as well as retaining a similar contract in Scotland and north Cumbria.
The family-owned company has also secured a contract for the nationwide management of First Milk’s secondary distribution operation, which is scheduled to start in the summer.
Bibby Distribution will be responsible for collecting around 3.5 million litres of milk from farmers every day, delivering it directly to First Milk creameries and First Milk customers under the national secondary deal.
Using innovation and technological advances Bibby aims to reduce logistics costs.
On the national secondary operation Bibby will work alongside Lloyd Fraser, which will provide the farm collection service for First Milk in central England and east Wales.
Bibby Distribution divisional director Ian Firth said: “We have been working with First Milk since the mid-nineties and it has always been part of our strategy to grow our presence in this valued sector.”