Wisconsin Dairy Farmers See Spike in Hauling Costs

Local News
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(Information from: Wisconsin Public Radio, http://www.wpr.org)
   MADISON, Wis. (AP) – A new report says Wisconsin dairy farmers are facing higher trucking costs as an oversupply of milk continues to strain the market.
The Upper Midwest Federal Milk Marketing Order released a report this month showing the average cost to haul 100 pounds of milk in Wisconsin was 24 cents in 2018, a 40 percent increase from 2017.
Agricultural economist Corey Freije tells Wisconsin Public Radio that milk hauling charges usually increase by 1 or 2 cents every year. Freije says last year’s unusual jump is partially due to a spike in diesel fuel costs, but it’s also an indication that dairy farmers have lost their market power.
He says the oversupply of milk means dairy processors don’t have to subsidize hauling costs to attract farmers.
 

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