Details of the move, designed to cut the rising costs of the free nursery milk scheme, have been published by the Department of Health (DoH) and will come into force next year.
It follows a consultation with the sector and milk suppliers in 2012 on the future operation of the scheme.
Under the Free Nursery Milk scheme, children under five, who are in an early years setting for at least two hours a day, are eligible for 189ml of milk (1/3 pint) free of charge daily.
At the moment, childcare providers can pay for the milk themselves and claim the money back from the Government, or use an agent to arrange milk deliveries and claim on their behalf.
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