UNCERTAINTY surrounds the future of Tasmania's 31 milk vendors following a decision by National Foods to wind up their supermarket contracts.
From March 1, National Foods milk and other products will be delivered to chain grocery stores across the state by logistics company SRT.
Amalgamated Milk Vendors Association Tasmania representative Greg Marriott said the news was "devastating" for vendors as up to half of National Foods milk was sold to supermarkets.
He said the company was taking a short-term view, replacing service-orientated distributors with a large logistics company.
"Under the new system it will go in a B-double to a depot, be put on pallets and shrink-wrapped ... it will travel 10 times to 20 times the distance it is now," Mr Marriott said.
A National Foods spokeswoman said the move was part of a review of its distribution strategies in Tasmania.
She said the company was in discussions with distributors over the impacts on their businesses.
