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Midwest Hauling Charges Average 32¢/cwt

December 6, 2012
By: Jim Dickrell, Dairy Today Editor
 
 

An analysis of milk hauling charges in the Upper Midwest (Federal Order #30) shows dairy farmers pay an average of 32¢/cwt. The study was conducted by Corey Freije, with the Federal Milk Market administrator’s office in Minneapolis.

A whole array of factors go into hauling charges: pounds shipped per month, distance to plants, competition among handlers and the number of dairy farms in the market. But two things are clear: Upper Midwest dairy farmers generally pay less—much less, in fact—than producers in other regions. And the more milk a Midwest farm ships, the lower the hauling rate per hundredweight.

For example, farms shipping less than 50,000 lb. of milk per month pay a weighted average hauling charge of 49¢/cwt. Farms shipping 5 million lb. of milk per money pay a weighted average hauling charge of 11¢/cwt.

Wisconsin producers also pay the lowest rates. On a simple average basis, they pay 25¢/cwt. If you calculate the average on a weighted basis (by volume shipped per month), the Wisconsin average hauling rate drops to about 12¢/cwt.

North Dakota’s hauling rates are the highest. The simple average rate is $1.11/cwt. The weighted average is 56¢/cwt.

 

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COMMENTS (1 Comments)

Smallest Dairy Farmer
Make sure you are not a small producer if you live in ND. No options for company s. I milk nine cows right now. Basic deal is this 40 dollars a pickup including a fuel surcharge, within 15 to 20 miles of two other producers. Both large enough to pay the 1.10 per hundred weight. However DFA s truckers dictate the price or not??? Any my price per pickup is right now, with late lactation cows in right now is 2.40 cents per pickup. The bad deal is if we pickup enough lbs to benefit with a fixed pickup price, then we are charged the going per CWT hauling price instead of getting it for under a dollar.​
12:04 PM Dec 7th
 



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