Meat + Poultry - May 2008 - 63

One of Cargill Meat Solutions' transportation methods is using its fleet
of 350 to 400 owner-operators. (Photo courtesy of Cargill Meat Solutions)

Fuel-pump shock
Record-high diesel-fuel costs put the
spotlight on shipping efficiently
By Bryan Salvage
bsalvage@sosland.com

S

kyrocketing diesel-fuel costs are negatively impacting
all industries that deliver finished goods to customers by diesel-powered trucks. It has become such a
concern that on April 3, Arkansas Congressmen Mike Ross,
John Boozman, Vic Snyder and Marion Berry sent a letter,
on behalf of the Arkansas Trucking Association, to Speaker
Nancy Pelosi and Minority Leader John Boehner petitioning
them to investigate the hardships being caused by spiralingupward diesel fuel prices.
A recent article in the Joliet Herald stated that in the 1990s
it cost $600 to truck a load of meat from North Central Illinois
to Florida. Earlier this year, that same trip cost $2,000 a load
in diesel fuel. And now that diesel fuel has risen to more than
$4 per gallon, the cost of fueling this trip is $3,000.

Diesel fuel
2008 retail, on-highway price per gallon

$5.00

$4.00

$3.00

Apr
68

I

Jul
MEAT&POULTRY

Oct
I

May 2008

Jan
I

$2.00

Apr

www.MEATPOULTRY.com

"We did an informal survey about a year-and-a-half ago
on the topic of rising fuel prices," National Meat Association
Spokesman Jeremy Russell says. "Yes, it is affecting NMA members, and yes, they are trying different ways to deal with the
rising costs. However, there are only so many ways to skin
a cat. In the end, those costs are going to have to be passed
on to consumers in the form of higher prices."

Variety of solutions
Cargill Meat Solutions, Wichita, Kan., uses a variety of transportation methods to deliver products to customers throughout North America. One method is through its fleet of about
375 owner-operators, says Jon Meier, vice president of transportation, Cargill Meat Solutions.
"This provides us flexibility in our delivery options, valuable perspective when working with our carriers and training opportunities for our employees," he says. "Our fleet
supplies a small percentage of Cargill's total transportation
needs. We also partner with many quality refrigerated motor carriers across North America to help us deliver products
to our retail and foodservice customers."
Cargill works with many carriers. "The tumultuous times have
required more communication and collaboration to ensure that
we manage costs and provide world-class service to our customers," Meier adds "We value our partnerships with our carrier partners. A number of years ago, we implemented a fuel surcharge
policy based on the weekly Department of Energy diesel price
statistics. The purpose of this policy was to ensure that our carriers were protected from the volatility in fuel prices."



http://www.MEATPOULTRY.com

Meat + Poultry - May 2008

Table of Contents for the Digital Edition of Meat + Poultry - May 2008

Contents
Meat + Poultry - May 2008 - 1
Meat + Poultry - May 2008 - 2
Meat + Poultry - May 2008 - 3
Meat + Poultry - May 2008 - Contents
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2025
https://digital.meatpoultry.com/sosland/mp/ippe-preshow-december-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2024
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2023
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-meat-trends-technology-july-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2023
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-beef-trends-technology-september-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-meat-alternative-trends-and-technology-may-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2022
https://digital.meatpoultry.com/sosland/mp/-meatpoultry-december-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2021
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-meat-trends-technology-october-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2021
https://digital.meatpoultry.com/sosland/mp/special-supplement-meat-alternatives-may-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2021
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https://www.nxtbook.com/sosland/mp/2011_02_01
https://www.nxtbook.com/sosland/mp/2011_01_01
https://www.nxtbook.com/sosland/mp/2010_12_01
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