Report: Wisconsin dairy farmers see transportation costs soar

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MADISON, Wisconsin – A new report indicates that dairy farmers in Wisconsin face higher trucking costs, as excess supply of milk continues to weigh on the market.

The Federal Decree on Milk Marketing in the Upper Midwest released a report this month stating that the average cost to transport 100 pounds of milk in Wisconsin was 24 cents in 2018, an increase of 40% compared to 2017.

Farm economist Corey Freije told Wisconsin Public Radio that milk transportation costs typically go up by 1-2 cents a year. According to Freije, last year's unusual rise is due in part to soaring costs of diesel fuel, but it also indicates that dairy farmers have lost market power.

He says that the excess supply of milk means that dairy processors do not have to subsidize transportation costs to attract farmers.