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Farmers fear Scott’s refrigerated logistics collapse could affect produce deliveries

Farmers fear the state-owned shipping company’s bankruptcy could affect deliveries of fresh produce across the country.

Scott’s Refrigerated Logistics, which has depots in every state of mainland Australia and employs about 1,500 people, went into voluntary management on Monday.

Australia’s largest cold chain refrigerated logistics company, delivering to supermarket giants Coles and Aldi.

Tony Mahar, chief executive of the National Farmers Federation, said the news of its closure came as a shock.

He said he was concerned about the potential impact on the transportation and delivery of perishables.

“The fact that the bankruptcy of a single company could disrupt much of Australia’s food supply chain shows that Australia has a serious problem of increasing market concentration in its supply chain. I am,” he said.

“We hope that the trustee’s process will quickly resolve this company’s collapse and return to the transportation and delivery of fresh produce from farmers to consumers.”

KordaMentha was appointed receiver.

Impact on the freight industry

Warren Clarke, CEO of the National Highway Transport Association, said the impact would extend to the entire transportation sector and to consumers.

“People will go to work, but there will still be disruptions in the freight chain and consumers will feel disruption throughout the system,” Clark said.

“It just shows the amount of pressure on the transportation and freight sector, and that pressure comes from the top.”

He said the industry is operating at an average profit margin of 2.5%, which, combined with other factors, is hurting business.

Uncertainty about the future of the Australian transport industry(ABC News: Alice Pavlovich)

In addition to driver shortages and outdated infrastructure, the biggest concern raised by drivers is fuel costs after the government decided to halve fuel taxes last year.

https://www.abc.net.au/news/2023-03-01/scotts-refrigerator-logistics-collapse-impacts-supply-chain/102037532 Farmers fear Scott’s refrigerated logistics collapse could affect produce deliveries

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