Logistics firm Bibby Distribution wins £50m contract with First Milk

Leading logistics firm Bibby Distribution Ltd has won a new contract to provide a farm collection service for farmers’ cooperative First Milk in West Wales, as well as retaining a similar contract in Scotland and North Cumbria, as part of a comprehensive review and tender process.

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 summer 2010.

The win means Bibby Distribution will be responsible for collecting around 3.5 million litres of milk from farmers every day, delivering it both directly to First Milk creameries as well as First Milk’s customers under the national secondary deal.

It is anticipated the new arrangement will realise significant savings in the fiercely competitive dairy sector, using innovation and technological advances to reduce logistics costs.

On the national secondary operation Bibby Distribution will work alongside Lloyd Fraser, who will provide the farm collection service for First Milk in central England and east Wales.

Bibby Distribution divisional director Ian Firth says: "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. The win has effectively doubled our stake in the market and represents an important milestone for our business. Our approach of driving cost efficiency, embracing technology, providing an integrated I.T. platform and a national secondary solution has all contributed to this award"

First Milk’s head of distribution James Baird comments: "Our focus has been to agree contracts which deliver the best value for our business and the best service for our members and customers. Bibby Distribution have demonstrated their ability to adopt new initiatives to drive out costs and First Milk are happy to expand the operations which come under Bibby Distribution’s control."