Wisconsin Hauling Rates Average 22¢/cwt

02:53PM May 26, 2010
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If you want cheap milk hauling, move to Wisconsin. In a study published by the Upper Midwest Milk Marketing Order, Wisconsin hauling rates averaged just 22¢/cwt in May 2009, the month covered by the report.
 
Wisconsin's hauling rate was 63¢/cwt below the simple average for all Upper Midwest shippers, and 7.4¢/cwt below the weighted average as well. Strong competition for milk among plants in Wisconsin was the primary reason for the low hauling rate. The low hauling rate is another reason why Wisconsin's mailbox prices were 6¢/cwt above average for all Federal Milk Marketing Orders in 2009. And that's despite the fact Wisconsin averages less than 20% Class I utilizaiton.
 
Conversely, North Dakota producers had the highest hauling rates of all producers in the Upper Midwest order, averaging $1.01/cwt. "The actual cost of hauling the longer distances and a simple lack of market competition explain the higher hauling rates charged in North Dakota,” according to Corey Freije, the report's author.
 
Here's how other states' hauling rates break down:
 
Illinois                         29¢/cwt
Iowa                            31¢/cwt
Michigan                     48¢/cwt
Minnesota                   34¢/cwt
South Dakota             70¢/cwt
 
For the complete report, click here.