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Firm loses milk deal
Page 12
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A FAMILY HAULAGE firm which has collected milk from dairy farmers in Cumbria and South-West Scotland for more than 75 years has lost its contract to a logistics giant from Liverpool.
Longtown operator Wm Armstrong dates back to 1927; milk collection accounts for nearly 10% of its turnover. This work will all but cease in November when the current deal expires.
Collections will instead be handled by Bibby Distribution, which describes itself as the "leading independent logistics company in the UK". Its bid was lower than the smaller firm's. An Armstrong spokesman says the jobs of 25 drivers and staff employed on the contract will be protected by moving with the contract or by taking on other roles at the company.
The contract was awarded by the farmers' co-operatives First Milk and Dairy Farmers, which sell the milk on behalf of dairy farmers across the UK. Armstrong, which is based at Townfoot, Longtown and collects from more than 200 farmers, delivers to Nestle at Dalston and also transports around the country.
Armstrong MD Jennifer Whyberd says: "Wm Armstrong has been synonymous with milk collection in Cumbria and south-west Scotland for over 75 years. The news has come as a great shock to us all — not least our loyal, longserving workforce, who have been key to the company's reputation for high quality service."
A First Milk spokesman says the biggest cost involved in selling milk is transportation. "That was the rationale behind awarding the contract," he explains. "Armstrong is a very good haulier, but we had to carry through the benefits to our members."
Bibby declined to comment.