Logistics operator Bibby Distribution has sealed a £50m milk collection contract with First Milk.

Bibby will begin collecting milk in west Wales and handling First Milk's nationwide secondary distribution operation. It has also renewed its contract with the co-0p in Scotland and north Cumbria.

It means Bibby will be responsible for collecting and delivering 3.5 million litres a day. "The win has effectively doubled our stake in the market and represents an important milestone," said Bibby divisional director Ian Firth.