State Releases Study On Milk Hauling Charges, Finds Small Farms Pay A Higher Percentage
Published: April 24th, 2008
By: Michael McGuire

NORWICH – Increased costs associated with picking up milk from small dairy farms resulted in operations with 80 or fewer cows paying a higher percentage of hauling charges, reports a state study released last week.

Some farmers argue if they should have to pay to have their product shipped away at all.

According to the study, conducted by New York State Agriculture and Markets, hauling costs ate into 3.1 to 4.4 percent of farm milk’s total value between 1991 and 2006.

When broken down, large farms were charged 2.7 to 3.6 percent of the price of the milk they sent off, while small farms paid anywhere from 4.2 to 6.8 percent, the data states. Most business aren’t charged at all to have their product shipped to a processor after it’s been purchased.

“This might suggest that small herds are burdened with a greater percentage share of hauling costs,” the study states. “However, there are increased costs involved in servicing smaller farms compared to larger farms. A milk hauler has relatively fixed times and costs involved in each farm pick-up stop, where the bulk milk tank must be agitated, samples taken, and milk transfer hoses sanitized.”

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