Dairy Report: Milk Hauler Shortage, Feed Costs Eat Away Profits

The trucker shortage is being felt everywhere, and that includes the dairy industry where the hauler is a crucial link in the dairy supply chain.

The trucker shortage is being felt everywhere, and that includes the dairy industry where the hauler is a crucial link in the dairy supply chain. There is a decline in the number of milk haulers across the country.

Experts say the decrease in haulers ties into the fact there are 93% fewer farms today compared to 1970. But milk haulers still carry the same amount of milk or even more.

According to a new study issued by Global Third-Party Logistics, the makeup of the commercial driver workforce includes 57% being over the age of 45 and 23% over the age of 55.

Logistics experts say warehousing demand along with e-commerce shopping have pulled resources away from commercial driving. It’s estimated for every nine trucker postings the trucking industry hires just one driver.

Shrinking Profits

Dairy farmers face obstacles each year, and this year is no exception. Farm Journal’s Milk Business recently asked readers what the most challenging hurdle would be for their operation this year. 61% said it would be rising feed costs. That was followed by labor shortages, supply chain issues, along with government and state regulations and replacement raising costs.

Milk prices recently hit their highest marks since 2014. But the cost of production has eaten away at dairy farmer’s profits.

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With a steady hand on the tiller of trade and a watchful eye on biosecurity, the industry is poised to turn this era of investment into a legacy of global dominance.
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