Australia’s largest milk processor, Murray Goulburn (MG), believes milk tanker fleets should be consolidated to save costs passed on to farmers.
The Warrnambool Standard newspaper quotes MG managing director Gary Helou as saying the co-op is open to talks with dairy manufacturing counterparts to broker a tanker sharing deal.
Helou is said to be surprised individual processors still use separate tanker fleets, sometimes resulting in three trucks heading daily along the same country lane.
“It’s ridiculous to have four, possibly five, tankers heading down the same roads each day. I’ve always said we’re in the dairy manufacturing business, not transport.
“Yes, I was surprised how parochial [the dairy industry] can be over this issue, so we are keen to review this process and pass on gains to suppliers.”
Since Helou took over the reins last year MG has cut 64 jobs at its Rochester plant to trim A$100 million from operating costs.
“This business needs to become more efficient and we are reviewing everything. This covers from the way we acquire milk and transport it to the way we market and retail it.”
Warrnambool Cheese and Butter marketing executive Richard Lange says the Allansford-based processor was happy to cooperate with MG and other organisations on milk transport. There was already a degree of shared milk pick-up in the south-west, he said.
“WCB is always keen to cooperate with Murray Goulburn and others when it comes to milk pick-up and we’re open to discussions.”
Fonterra Ingredients Australia managing director Simon Bromell is reported as saying the company welcomed MG’s interest in transport.
