Exel decides milk is no cash cow
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• Logistics giant Exel is abandoning bulk milk deliveries because of continuing upheaval in the market.
The withdrawal will result in 240 drivers and 120 other employees being transferred to other contractors by October. No redundancies are expected.
Around 200 of the staff will be employed by Lloyd Fraser which is taking over all Zenith Milk's milk haulage. This involves the transfer of Exel depots at Aspatria, Clitheroe, Dalton, Kendal and Penrith as well as subcontracting haulage from County Durham-based Davidson of Coundon and Cumbria-based J Sharp & Son. Both these companies currently collect for Zenith independently Exel's other main customer in bulk milk deliveries is First Milk.
Exel says problems facing the industry include falling prices, BSE and foot and mouth: "Exers decision has been made against this background and the increasingly capital-intensive, low-margin nature of the industry."