On The Land

Going, going, PST milk transport business gone

RITCHIE Brothers Auctioneers have conducted one of Australia's biggest auctions of transport and earthmoving equipment in recent times, online across the nation, on February 23 and 24, with machinery located in depots in Adelaide, Brisbane, Dubbo, Geelong, Mittagong and Perth.

by Michael Giles

Published February 24, 2022

Going, going, PST milk transport business gone

And a feature of the auction has been dozens and dozens of prime movers from the Welshpool-based Peter Stoitse Transport’s former milk pick-up division which extended to 94 trucks.

The firm, which grew from humble beginnings at Welshpool, under the hard work and direction of the Australian Road Transport Hall of Famer, the late Peter Stoitse, over the past 50-plus years, is now downsizing.

While it is continuing with general freight, the family-owned and operated company picked up and delivered its last tanker of milk at the end of January this year.

But that doesn't take away from what has been achieved by a local company in the very tough world of road transport, especially milk transport where margins are notoriously tight and the perishability of the product creates added pressure.

Here’s a recent story by a Staff Writer for ‘Big Rigs’ National Road Transport Newspaper:

Peter Stoitse Transport (PST), the family trucking company that collected 20 per cent of the milk from Victorian farmers, is quitting the milk business.

PST Chief Executive Officer, Mike Munday said the company was making good progress to protect its people and the industry by transferring the operations and equipment to McColl’s Transport.

“That is our immediate priority. For half a century, the family has always looked after their people and customers. They want to finish as they started. We hope there will be good news for everyone in time for Christmas,” Munday said.

PST’s public relations liaison, Michael Smith said that McColl’s Transport had agreed to take on most of the PST employees, but were waiting on final confirmation from one supplier.

“There’s still one supplier that hasn’t agreed to switch contracts yet, but we’re hoping that will happen soon,” said Smith.

PST has 276 employees and 94 milk trucks based at Leongatha, Welshpool, Shepparton, Warrnambool, Drouin, Maffra, Albury and Wallace, while the continuing General Freight Division has 20 trucks based at Hallam and Welshpool, which is company headquarters.

Milk is 85 per cent of the company’s business and those staff not redeployed elsewhere will be absorbed by the remaining divisions.

“Stoitse will keep some, because it’s going to continue the general freight and blood divisions,” Smith added.

Peter Stoitse Transport Pty Ltd, formed by Australian Road Transport Hall of Famer Peter Stoitse 51 years ago, collects 1.2 billion litres of milk a year from more than 500 Victorian farmers.

Steven Stoitse, son of the late Peter Stoitse, said it was difficult to walk away from an industry that his family has loved all their lives.

“We are determined to honour Dad’s legacy by doing so with compassion for our people and the industry. McColl’s is being extremely helpful to achieve that result,” said Stoitse.

Munday said the company had been operating under challenging customer contracts, making conditions very difficult in recent years and were unable to invest in new equipment in a highly competitive market.

“Then COVID could not have come at a worse time. The pandemic added $500,000 to annual costs as well as other uncertainties. It became more difficult to recruit drivers,” he said.

“The company has suffered losses for three years. We have been unable to invest in innovation which gradually erodes our competitive position. An orderly withdrawal now is better for farmers and employees than trying to hold on and perhaps coming to a crash landing.”

The company is owned by Norma, her two sons Steven and Terry and daughter Sandra. Seven family members have a total of nearly two centuries experience in the business.

PST made its last collections on January 31 after completing agreements for McColl’s to begin collections on 1 February. Almost all the milk processors agreed to the transfer of contracts.