The real cost of Milk Haulage ?

[Alfred]

If transport is such a big drain on the milk price why do muller collect every day and not every other ? Especially in the N.E of Scotland. Don't think that any other processors collect daily like muller do, but still muller seems competitive on milk price compared to other milk buyers.

 

[kiwi pom]

If transport is such a big drain on the milk price why do muller collect every day and not every other ? Especially in the N.E of Scotland. Don't think that any other processors collect daily like muller do, but still muller seems competitive on milk price compared to other milk buyers.

Suppliers don't have the capacity for skip day?

 

[Sharpy]

If transport is such a big drain on the milk price why do muller collect every day and not every other ? Especially in the N.E of Scotland. Don't think that any other processors collect daily like muller do, but still muller seems competitive on milk price compared to other milk buyers.

I am sure that back in the Wiseman days someone asked this at a producer meeting an the response from Mr Wiseman was "how can we sell it as fresh milk when its been lying on farm for 2 days!"

 

[Alfred]

I am sure that back in the Wiseman days someone asked this at a producer meeting an the response from Mr Wiseman was "how can we sell it as fresh milk when its been lying on farm for 2 days!"

Which them begs the question of how can they charge suppliers 1.75ppl haulage from the N.E of Scotland when it is mullers own choice to collect their milk at a higher transport cost??

 

[Traffic dodger]

Its the same here farmers decided they didn't want to supply Fonterra so new processors came in, making the same products and paying the supplier very similar money. Now you have Farmers around one factory actually supplying another 100k's away and vice versa, so we would head north empty and meet their tankers coming south empty
This is very common in the transport industry in general though, keeps everyone in a job

Transport is done like this because drivers like site seeing and helps get the overtime in. Haha

 

[DairyGrazing]

Dale Farm has a stop charge. It's levied per collection, but also per litre. There is a minimum stop charge, but it's capped too at about £260/month EODC, so collections of more than about 4k don't pay any more accordingly. I can't recall the formula in detail, but I'm reliably informed it doesn't cover the cost of transport. All members are charged by the same formula regardless of distance. Milk could be going to one dairy today, but another one in two days time, so distance isn't relevant anyway. Fleets run mostly 29,000 steering triaxles these days, I think the 8 wheelers are long gone. Hi speed pumps are amazing these days. I think it's 60k litres/hr they do.

Which them begs the question of how can they charge suppliers 1.75ppl haulage from the N.E of Scotland when it is mullers own choice to collect their milk at a higher transport cost??

The tag line was always "fresh milk daily." Back in the day Meadows and Heelers always said they wanted it in their factories as soon as possible so it was under their control.

 

[betweenthelines]

If transport is such a big drain on the milk price why do muller collect every day and not every other ? Especially in the N.E of Scotland. Don't think that any other processors collect daily like muller do, but still muller seems competitive on milk price compared to other milk buyers.

Different attitude under Muller ownership-Wiseman sold to Muller not the other way round because Muller was the more switched on business.

AOD collection is only worth it if the whole area goes AOD- no point in collecting your milk today and your neighbour's tomorrow.

Anyway Dairy farmers have nothing to shout about re transport costs. Farmer owned Coop Peninsular Milk had a factory at Okehampton Devon but sold a lot of milk (at a big loss) in the Bristol area 100 miles away. Reason-they employed a sales rep who lived in Bristol!

 

[Traffic dodger]

I think transport is to cheap we seem to move goods around the country for the sake of it. We build big central places because we are told this is more efficient and cost effective than transport goods and materials miles to feed these central places for it only to be transported miles back again. I know we can not have a herd of cows grazing in Hyde park and cites need to be fed with goods but there is a lot we could do

 

[Alex72]

Muller Direct (non aligned) NE farms are paying 1.75p/l for the haulage of milk in arctic bulkers from the Aberdeen depot to Bellshill (145 miles of dual carriageway and motorway). Muller at the time stated that this was the cost to transport the milk to market.

The cost of collection from farm to depot is included (like most) in the standard litre price.

As the transport cost is reviewed annually, numerous suggestions and attempts have been made to reduce this cost, but Muller hasn’t engaged at all.

I would suspect that the haulage charge (in Muller’s case) is a way of getting rid of producers without the bad publicity of terminations, and it seems to be working as nearly half the producers that are paying the full 1.75p have left in the first 18 months of its introduction.

 

[vantage]

Muller Direct (non aligned) NE farms are paying 1.75p/l for the haulage of milk in arctic bulkers from the Aberdeen depot to Bellshill (145 miles of dual carriageway and motorway). Muller at the time stated that this was the cost to transport the milk to market.

The cost of collection from farm to depot is included (like most) in the standard litre price.

As the transport cost is reviewed annually, numerous suggestions and attempts have been made to reduce this cost, but Muller hasn’t engaged at all.

I would suspect that the haulage charge (in Muller’s case) is a way of getting rid of producers without the bad publicity of terminations, and it seems to be working as nearly half the producers that are paying the full 1.75p have left in the first 18 months of its introduction.

Could the producers organise their own transport to Bellshill ?

 

[Traffic dodger]

Would there not be a long of work getting tenders, writing contracts etc . Can not be to many hauliers with tanks etc to cover the work 7 day’s a week.

 

[Morgatroid]

Hi everyone. Muller wouldn't allow anything other than a Muller tanker onto their premises unfortunately. The north east farmers which include both Angus and Aberdeenshire, have fought tooth and nail to reverse the haulage charge or at least negotiate a reduction, but it has been head and brick wall stuff.

 

[Traffic dodger]

Not taking sides but it must be hard to price right. If you’re getting X amount a litre but need a full load to make it pay and the farmer produces less, it’s not like you can just call in somewhere else and put a couple of extra pallets on to make the run pay. A tough one.

 

[Derrick Hughes]

There should be a law milk can't travel more than 60 miles unless it's for liquid market. It's tragic what they did around here closing all the modern factories .Felinfach in particular

 

[westwards]

Muller Direct (non aligned) NE farms are paying 1.75p/l for the haulage of milk in arctic bulkers from the Aberdeen depot to Bellshill (145 miles of dual carriageway and motorway). Muller at the time stated that this was the cost to transport the milk to market.

The cost of collection from farm to depot is included (like most) in the standard litre price.

As the transport cost is reviewed annually, numerous suggestions and attempts have been made to reduce this cost, but Muller hasn’t engaged at all.

I would suspect that the haulage charge (in Muller’s case) is a way of getting rid of producers without the bad publicity of terminations, and it seems to be working as nearly half the producers that are paying the full 1.75p have left in the first 18 months of its introduction.

Is Muller's PR man not still that worm Mr Jack ?? And he is from the North east !!

 

[westwards]

Hi everyone. Muller wouldn't allow anything other than a Muller tanker onto their premises unfortunately. The north east farmers which include both Angus and Aberdeenshire, have fought tooth and nail to reverse the haulage charge or at least negotiate a reduction, but it has been head and brick wall stuff.

There are a few tankers go into Bellshill that are not Muller !!

 

[The Agrarian]

If they were worth keeping open, why were they closed?

 

[Morgatroid]

What it boils down to is Muller are no longer interested in procuring milk north of Dundee unless it is Tesco milk. At a time where there is excess milk is Scotland ( or not enough processing options), they are dropping marginal milk fields

 

[cattow]

There are a few tankers go into Bellshill that are not Muller !!

Baurge collect all Muller milk around here

 

[Alex72]

Is Muller's PR man not still that worm Mr Jack ?? And he is from the North east !!

Yes he’s from the North East, in fact he’s from a dairy farm. Stopped milking and sold the farm a while ago.