Valley Farm Transport's 55-year business philosophy is the key to its success

Valley Farm Transport’s 55-year business philosophy is the key to its success

There are two things that are never lacking at Valley Farm Transport. First are the challenges that the Dixon, Calif.-based agricultural products hauler faces every day. Second is the determination to address those issues effectively and professionally.

ā€œWe embrace a no-compromise philosophy when it comes to customer satisfaction,ā€ says David Nickum, president and chief executive officer of the family-owned company his late father founded in 1963. ā€œOur vision is to be recognized as the trucker of choice by our customers, employees, vendors and industry leaders.ā€

Valley Farm Transport operates a fleet of more than 230 tractors and more than 850 sets of hopper, tanker and flatbed trailers in northern and central California. It has terminals in Dixon, Arbuckle, Bakersfield and Stockton, Calif.

The company hauls an extensive list of products, including tomatoes, rice, walnuts, almonds, sunflower, corn, wheat, garlic, onions, pistachios, prunes, and other commodities, along with spring water and refuse. It serves both small companies and large clients like Kraft Heinz and Campbellā€™s Soup.

ā€œOur trucks average from 60,000 to 100,000 miles a year,ā€ Nickum relates. ā€œAs you would expect, weā€™re seasonally driven. During the main summer harvest, the fleet can be on the road 12 to 16 hours handling anywhere from three to 10 loads a day.

ā€œWhile 85% of our hauls are within 120 miles of a company terminal, they can start as close as fields that are two miles away and end 500 miles away at a customerā€™s processing plant,ā€ Nickum explains further. ā€œIn the winter, we have fewer trucks running as weā€™re primarily hauling water, refuse, and rice to ports for export or from dryers to the rice mills.ā€

An emphasis on reliability

ā€œHauling perishables means downtime has to be minimal,ā€ Nickum continues, ā€œand we pay our drivers hourly and based on productivity. That means we put extra emphasis on reliability, but a few years ago, with some of our newer trucks, we found that we were experiencing more downtime.ā€

To help reduce downtime that hampers productivity in its fast paced operation, Valley Farm Transport has been moving to three-year leases with PacLease and Ryder. About half the fleet is now operated under lease agreements. That also means the leasing companies are handling any road call issues and are able to supply replacement vehicles to keep the operation going if a problem does arise.

ā€œAfter reviewing our cost of ownership compared to the cost of a maintenance lease, the lease agreements make sense financially as well as from the standpoint of limiting downtime,ā€ Nickum explains. ā€œBased on travel distances from the shops we have at each of our terminals, we will continue to move to a leasing model. For the tractors we own, and for all of our trailers, we continue to perform maintenance and repairs at our shops.ā€

Preferred brand

What hasnā€™t changed about the Valley Farm Transport fleet, Nickum notes, is its preferred brand of truck. The companyā€™s first vehicles 55 years ago were Kenworths, and since then the fleet has included W900, T800 and T440 models, and 90 of the manufacturerā€™s T880s are in the operation as well.

ā€œOur latest T880s feature 430-HP PACCAR MX-11 engines,ā€ Nickum relates. ā€œWe were initially specā€™ing the MX-13 engine rated at 405 HP, but the MX-11 meets our needs and it saves about 400 lbs. Weā€™re paid by weightā€” a typical load nets 56,000 lbs.ā€”so that adds up for us quickly.ā€

The single-axle T880s in the Valley Farm Transport fleet also have other weight-saving components. Along with a short 156-in. wheelbase, the tractors are equipped with aluminum wheels, hubs, air tanks and clutch housings, lightweight drums, low profile 22.5-in. tires, and have no passenger seat.

Valley Farm Transport also works closely with Kenworth through its dealer, NorCal Kenworth in Sacramento, to address driver needs in its specs. ā€œHauling seven to 10 loads a day means our drivers get in and out of our trucks frequently,ā€ Nickum explains. ā€œFor their safety, we specify the size and location of grab handles, and step heights off the cab and fuel tanks.

ā€œWe also have an extensive training program for new hires,ā€ Nickum continues. ā€œNew drivers are assigned to work with one of our veterans, some with more than 20 years of experience, for at least ten days. The trainees are fully compensated so no one is in a hurry to put a driver on the road who hasnā€™t learned the way we operate.

ā€œWe do not really have an issue recruiting drivers because we look for help regionally and seasonally,ā€ Nickum adds. ā€œWe hired a full-time driver recruiter this year. We also pay referral bonuses to drivers who help recruit new hires, and a year-end bonus to all drivers for completion of service.ā€

Staying true to its roots

For Nickum, the focus on equipment and drivers that continues today at Valley Farm Transport began with his father, Bob Nickum, who started the company from scratch by serving as its driver. ā€œMy father began by hauling grain and built a successful company,ā€ he says. ā€œStaying true to our roots, we continue to strive to provide our customers with ethical, innovative, professional and superior customer service. In that regard, our business philosophy has never changed.

ā€œWe have a culture of working extremely hard and we only want to serve best-in-class customers,ā€ Nickum continues. ā€œWeā€™ve grown organically with some of our longest standing customers, and we continue to gain a lot of new business based on our reputation in the market.

ā€œWeā€™ve also expanded and added capabilities buying out smaller companies over the years, but we havenā€™t grown the business just to get bigger,ā€ Nickum concludes. ā€œWeā€™ve been successful because Valley Farm Transport continues to distinguish itself as the premier bulk carrier in California.ā€

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