By FWi staff

MILK MARQUE has announced a major review of its milk haulage contracts from November, leading to budgeted savings of over £2 million a year.

The main features of the review will be to reduce the number of hauliers on contract to the MM as well as close a number of ex-farm collection depots.

As result, a number of existing haulage depots will increase in size while some will close. Others will see a change of haulier.

Pat Williams, MMs director of distribution said that milk haulage is the major cost to the business.

All existing milk haulage contracts end on the 31 October and this opportunity will be taken review the companys national strategy.

“It is with regret that we will end our association with a number of hauliers which have provided our members and customers with excellent service,” said Mr Williams.

“Rationalising in this way provides us with a foundation for continued efficiency gains, while maintaining service levels to our farmers members and dairy company customers,” he added.

Every effort will be made minimise the impact on depot staff and, where appropriate, MM will offer re-location sites.

Mr Williams said that all concerned are determined to maintained service levels to members and customers and to manage the process professionally.