Are you “Milking” this new business with flexible trailer rental?   

Are you “Milking” this new business with flexible trailer rental?                         

Most markets grow in unexpected ways, which can lead to new business opportunities for those who can read then exploit new trends.  The milk market is growing in unanticipated directions today, with the category “milk,” much to the dismay of dairy farmers, now also applied to plant-based dairy alternatives like soya or almond milk, which are rapidly gaining in popularity. Is your trailer fleet ready to “milk” this new opportunity? Trailer rental can help you by providing a flexible way to manage your fleet.

More milk

Milk is the top agricultural commodity globally in value terms. (source: Irish Farmers Journal) So important that the United Nations celebrated it with a World Milk Day on 01 June.  Today’s milk market is undergoing rapid change due to the fast-growing alternative milk segment.

In a Rabobank report entitled “Dare not to dairy – How the industry can respond to dairy-free,” Tom Bailey, RaboResearch Senior Analyst-Dairy says “Global demand for dairy is expected to grow by 2.5 percent for years to come, with non-fluid categories [sic: cheese, butter, etc] offsetting weak fluid milk sales.” However, this does not apply to retail sales of fluid milk in western Europe (a market worth US$ 18.6bn) and the US (US$ 12.5bn). They have fallen at an annual rate of 5 percent and 3 percent respectively in the last five years to 2017, according to Euromonitor.

Dare not to dairy

The same report notes that global sales for dairy alternatives have grown at a rate of 8 percent annually over the last ten years. In 2017, dairy-free milk sales of US$ 15.6 billion represented 12 percent of total fluid and alternative milk sales globally, according to Euromonitor. Underlying this trend are changing consumer perceptions of health, lifestyle choices, curiosity, and perceived sustainability. Millennials and Generation Z are driving this surge in demand. Rabobank comments that investment returns in dairy alternatives have been greater than in traditional dairy.

Flexible trailer capacity for new opportunities

The milk market is an interesting example of a growing and diversifying industry. It offers exciting opportunities for those road freight companies that can respond quickly to changes in demand because they have flexible cargo capacity.

Convert leads with confidence

If you know that you have easy potential access to a significant number of trailers through rental, you can take decisions on new business leads more quickly and with greater confidence.  Trailer rental gives you the power to expand or contract your business to suit market conditions without having the overheads of investing in, owning and maintaining trailers sitting for long periods in the yard when not in use. Another advantage of trailer rental is that you can bring on-stream different types of trailers for different applications to be it a tanker to transport milk or a double-decker to carry cars.

Trailer rental, well-established

Trailer rental is a well-established and popular practice among fleet operators. The process for renting a trailer is relatively simple and clear compared to raising capital to buy trailers outright. Purchasing new trailers can cost anything from €30,000 onwards.  Trailer purchases often require additional funding. This can exert pressure on your company’s balance sheet.

Trailer flexibility is king

Trailer flexibility is king with TIP trailer rental. TIP can provide its customers with preferential rental terms within lease contracts to increase or decrease the number of rented trailers as demand fluctuates, thus giving them greater peace of mind and a source of competitive advantage.

Let TIP maintain and repair your trailer

TIP includes a maintenance and repair management service in the trailer rental contract. During the maintenance and repair of your rental trailers, you can use our replacement trailers to ensure that interruptions to your business are kept to a minimum.

Roadside assistance is also part of the TIP trailer rental package. We can come to your rescue whether your trailer is on the way to Barcelona, Brussels, Budapest or any other European destination. Our Europe-wide breakdown recovery service operates 24/7 365 days per year.

A trailer for every task

TIP rents out trailers for every task including curtainsider/tilt, moving floor, flat, reefer, tanker, tipping and many other types of trailers as well as trucks.

Are you “milking” new business with flexible trailer solutions?

To find out how you can milk new business opportunities with TIP Trailer Services flexible trailer rental solutions, please contact us using this form.

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