Switching to milk kegs delivering dairy on-tap and reusable glass bottles is saving money and eliminating plastic waste.

Each week, we receive eight, 18-litre milk kegs from Ashgrove Farm for use in our 16 school breakfast programs and for general cooking purposes in the Loaves and Fishes Devonport kitchen.

Tasmanian business Udder Way says every keg saves 7000 single-use plastic bottles from being produced. The on-tap milk delivery system is being widely used in cafes, restaurants, grocery stores, and delicatessens.

Previously, Loaves and Fishes delivered milk for school breakfast programs in 2-litre plastic bottles. Schools had to dispose of the bottles for recycling. Udder Way says only about 50 percent of plastic bottles are recycled, the remainder ending up in landfill.

Now, glass bottles are washed and reused.

The kegs are washed and returned for refilling while the lines and milk tap are also cleaned weekly.

Loaves and Fishes Tasmania food procurement manager Grant Rockliff said milk-on-tap was efficient, hygienic, and effective in reducing single-use production and waste.

"We're delighted with the partnership with Udder Way and Ashgrove," Grant said.

"Ashgrove donated 200 glass bottles and Udder Way has also been very generous in helping us set up the system to suit our warehouse and kitchen environments.

"We love it, the schools love it, and so does the environment!"