Bibby Distribution's volumes with First Milk will almost double after it secured a contract for the nationwide management of the farmers' co-operative's secondary distribution operation, scheduled to start in the summer.
Following a comprehensive review and tender process, Bibby has also picked up the farm collection service in West Wales and retained a similar contract in Scotland and north Cumbria.
Bibby 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."
On the national secondary operation, Bibby will work alongside Lloyd Fraser, who won the farm collection service for First Milk in central England and east Wales earlier this month.
First Milk's head of distribution James Baird says: "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."