The Texas Dairy Industry’s Transportation and Logistics Report
Milk is perishable, heavy and produced every day, which makes transportation one of the most important parts of the dairy business. Here is how logistics work for Texas dairies and what to ask about them.
How does milk get from farm to plant?
Milk is cooled on the farm, picked up by insulated tankers on a regular schedule and delivered to a plant, where it is tested before unloading. Routes are planned so trucks collect from several farms, which spreads the cost.
Because cows are milked every day, a missed pickup means dumped milk or full tanks. Reliability is as important as price. The report in the headline is an editorial subject, so any figures attributed to it should be checked at the original source.
Pickup frequency, tank size and the distance to the plant all affect how a dairy fits into the system.
Milk quality is tested at pickup and again at the plant, so cooling and cleanliness on the farm affect whether a load is accepted. A rejected load costs far more than one slow morning.
What drives hauling costs?
Fuel, driver wages, truck maintenance, insurance, distance and how full the truck is all matter. A dairy on a good route near a plant is cheaper to serve than one far out on a back road.
Hauling charges are often deducted from the milk check, so look at how your buyer or cooperative describes them. Dairy Market News and the Economic Research Service provide context on prices and costs.
Some cooperatives pool hauling costs across members, which can smooth out differences between near and far farms. Others charge by distance. Ask how your buyer does it and how long the arrangement has been in place.
- Distance to the plant
- Fuel and driver costs
- Truck load efficiency
- Frequency of pickup
- Road and weather conditions
Texas geography matters
Texas is big. Dairies around Stephenville, in the Panhandle and farther west face different distances and different plants. Weather events, road closures and construction can disrupt routes in any region.
Ask your buyer how they plan for a storm or a road washout, and where backup plants and routes exist. Farms with extra tank capacity gain flexibility.
Seasonal swings matter too. In the spring flush, plants and trucks can be stretched, and during summer heat, milk output tends to dip. Logistics plans have to flex through the year.
Labor, regulation and equipment
A shortage of qualified drivers affects every trucking business. Rules on hours of service, licensing and vehicle safety come from federal and state agencies, including the Department of Labor, and the OSHA site covers workplace safety.
Farm roads and driveways should be safe for large tankers, with room to turn and a firm surface in wet weather. A bad lane can cost you a pickup.
Insurance and liability for tanker trucks on your property are worth a word with your agent as well.
What a farm can control
You cannot set diesel prices, but you can keep your lane in good shape, maintain your tank and cooling system, give the driver clear access and communicate quickly when something changes. Those habits keep you a welcome stop on the route.
You can also plan for emergencies. A backup generator for cooling, a second contact at your buyer and an agreement about what to do if a truck cannot arrive can limit losses.
Beyond milk: feed and inputs
Logistics also covers feed deliveries, supplies and shipping of finished products. Fuel prices and rail or truck availability change feed costs, so a dairy's cost of production depends on moving goods as well as milk.
The Foreign Agricultural Service and International Trade Administration explain how freight affects export markets. The tractor and equipment guide covers equipment, and the rural farm guide looks at rural infrastructure.
Questions to ask your buyer and your hauler
Ask about pickup schedules, what happens in bad weather, how hauling is charged and what notice you get if routes change. Ask what tank size works best and whether a larger tank would reduce costs.
Over at farm.FM the dairy section and agribusiness page cover supply chain stories, and a farm.FM story on milk hauling is a fun read. The dairy herd guide covers cooling and milk quality.
Keep a small notebook of pickup times, problems and who you called. Patterns show up quickly, and the record helps when you bring a concern to your buyer.
Sources and further reading
- USDA Dairy Market News: weekly dairy price reports
- USDA Economic Research Service: farm economy data and analysis
- U.S. Department of Labor: labor rules and programs
- OSHA: workplace safety
- USDA Foreign Agricultural Service: export markets and trade data
- International Trade Administration: export help for U.S. businesses
Ask locally: Ask your milk buyer or cooperative field representative about pickup schedules and hauling charges.