Tank Transport - April 2012

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The National Newspaper of the Liquid and Dry Bulk Transportation Industry

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OEM PRODUCT DISPLAY

Global dairy costs will
remain high, report says

The global dairy market will offer
strong growth prospects in the coming
five years, but the uneven spread of
this market expansion and an era of
elevated pricing will create as many
challenges as opportunities for key
players along the dairy supply chain.
This is one of the key conclusions
coming out of the Rabobank Food and
Agribusiness Research and Advisory
report, “Global Dairy Outlook: Show
me the money.”
Among its findings, the report
states that the cost of producing
exportable milk will remain high.
The cost of producing milk varies
considerably among farms, even
between neighbors, depending on
the system of farming used and
the farmer’s goals and abilities.
Costs on the same farm can also
vary considerably from year to year,
affected by weather conditions, input
costs and decision-making, the report
claims.

Nonetheless, farmers in some regions are able to produce at lower costs than farmers in others due to a combination of natural factors including climate, soil and proximity to feed, and man-made factors, including herd genetics, availability of technology and operator expertise.

Historically, the Southern Hemisphere milk producers (Australia, Argentina and New Zealand) had significantly lower costs due to their extensive pasture-based milk production systems, relatively cheap factors of production and low inputs. By contrast, Northern Hemisphere producers (the U.S. and particularly the EU countries) had significantly higher production costs associated with intensive feed operations, high fixed costs and an

Heil Trailer International,
Co. names Zack Coley
as vice president sales
and marketing North
America
Trimac announces new
business with Provident
Energy Ltd.

Wabash buying Walker
Group Holdings

Zack Coley has rejoined Heil Trailer International, Co. as its Vice President Sales and Marketing North America. He has over 30 years of experience in the transportation industry. Zack will report directly to Randall Swift, the President and CEO of Heil Trailer.

Trimac Transportation Ltd.
(“Trimac”) (TSX: TMA) announced
that it has entered into a new contract
to haul a significant new volume
of NGL’s (Natural Gas Liquids) on
behalf of Provident Energy Ltd. in
northeastern British Columbia.
This contract builds on Trimac’s
existing relationship with Provident
that dates back to August 2003.
The hauling will be operated out
of Trimac’s Dawson Creek, British
Columbia facility and is expected to
commence in the second quarter of
2012 and run through to March 2014.
Ed Malysa, Trimac’s President
Walker Group Holdings (WGH)
recently announced it has agreed to
be purchased by Wabash National
Corp. Wabash is expected to complete
the acquisition this quarter.

(Global dairy continued on page 17)

(Zack Coley continued on page 16)

( Trimac continued on page 16)

( Wabash continued on page 16)

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