A family trucking company that collects 20 per cent of the milk from Victorian farmers is quitting the business after suffering losses for three years.
Peter Stoitse Transport Pty Ltd, formed by Australian Road Transport’s Hall of Famer Peter Stoitse 51 years ago, collects 1.2 billion litres of milk a year from more than 500 Victorian farmers.
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,” he said.
“For half a century, the family has always looked after its people and customers.
“They want to finish as they started.
“We hope there will be good news for everyone in time for Christmas.”
Milk is 85 per cent of the company’s business.
PST will continue to operate its general freight and blood divisions.
Steven Stoitse, son of the late Peter Stoitse said the family was walking away from an industry they loved with a heavy heart.
“We are determined to honour Dad’s legacy by doing so with compassion for our people and the industry,” he said.
“McColl’s is being extremely helpful to achieve that result.”
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.
Mr Munday said the company had been operating under challenging customer contracts, making conditions very difficult in recent years.
“Then Covid-19 could not have come at a worse time,” Mr Stoitse said.
“The pandemic added $500,000 to annual costs as well as other uncertainties.
“It became more difficult to recruit drivers.
“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.”
PST has 276 employees and 94 milk trucks based at Leongatha, Welshpool, Shepparton, Warrnambool, Drouin, Maffra, Albury and Wallace.
The continuing General Freight Division has 20 trucks based at Hallam and Welshpool, which is company headquarters.
PST will make its last collections on Monday 31 January and hopes to complete agreements for McColl’s to begin collections on Tuesday 1 February.
Almost all the milk processors have agreed to the transfer of contracts.
