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Thread: Grassland

  1. #181
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    Feb 2013
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    As a random thought on this....

    I have never understood why the producer pays for the hauling. Once it leaves my farm it is out of my controle, hauled by somone contracted by the processor who negotiated a price without my input..... But I pay the bill.

    It really is true that a farmer buys at retail, sells at wholesale and pays the freight both ways.

  2. #182
    Join Date
    Nov 2006
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    995

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    Quote Originally Posted by whistle pig View Post
    As a random thought on this....

    I have never understood why the producer pays for the hauling. Once it leaves my farm it is out of my controle, hauled by somone contracted by the processor who negotiated a price without my input..... But I pay the bill.

    It really is true that a farmer buys at retail, sells at wholesale and pays the freight both ways.
    With lack of competition in a lot of areas, and an oversupply of milk everywhere, processors can pretty much put the screws to producers any way they want. With my former processor, while they didn't pay hauling directly they made it clear that it was built into what was at the time a very nice premium. Of course when they made a downward adjustment in their premiums, that pretty much erased my trucking subsidy even if it wasn't spelled out as such in our contract.

    Just brought up a potential issue with my field rep.... Grassland sells my milk all over the place. Now that I'm in charge of hauling, what happens when they decide to sell my milk to Timbuktu? He tried to tell me that it is between myself and the trucker. But my counterpoint was that Grassland is the company that ultimately chooses the destination for my milk. If it actually went to Grassland it wouldn't be an issue. But if they want to sell my milk to a nearby plant, all the better. But they also can screw me by selling it to a far away plant. I don't want to be at their whims as it will be impossible to budget my trucking on a monthly basis if they are selling my milk all over the place.

  3. #183
    Join Date
    Jul 2011
    Location
    Kaukauna WI
    Posts
    4,855

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    Quote Originally Posted by whistle pig View Post
    As a random thought on this....

    I have never understood why the producer pays for the hauling. Once it leaves my farm it is out of my controle, hauled by somone contracted by the processor who negotiated a price without my input..... But I pay the bill.

    It really is true that a farmer buys at retail, sells at wholesale and pays the freight both ways.
    .
    Processors all have Amazon Prime accounts.

  4. #184
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    Feb 2013
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    1,291

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    On
    Quote Originally Posted by ElJefe View Post
    With lack of competition in a lot of areas, and an oversupply of milk everywhere, processors can pretty much put the screws to producers any way they want. With my former processor, while they didn't pay hauling directly they made it clear that it was built into what was at the time a very nice premium. Of course when they made a downward adjustment in their premiums, that pretty much erased my trucking subsidy even if it wasn't spelled out as such in our contract.
    Aaaahhhh......the old "it will be built into the pay price" .....Jedi mind trick.

  5. #185
    Join Date
    Oct 2013
    Location
    north-central virginia
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    676

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    Quote Originally Posted by ElJefe View Post
    Just brought up a potential issue with my field rep.... Grassland sells my milk all over the place. Now that I'm in charge of hauling, what happens when they decide to sell my milk to Timbuktu? He tried to tell me that it is between myself and the trucker. But my counterpoint was that Grassland is the company that ultimately chooses the destination for my milk. If it actually went to Grassland it wouldn't be an issue. But if they want to sell my milk to a nearby plant, all the better. But they also can screw me by selling it to a far away plant. I don't want to be at their whims as it will be impossible to budget my trucking on a monthly basis if they are selling my milk all over the place.
    I realize the situation is different, since we are co-op members and you aren't, but just how it's done here.
    We pay shipping to the nearest regular Md&Va plant, regardless where it goes. Currently, milk is being side-stepped down the coast. Pa milk goes to Va, Va milk goes to Nc, etc. Eventually, all Md&Va members eat the cost of this, but it doesn't affect the individual farms involved.

  6. #186
    Join Date
    Jul 2011
    Location
    Kaukauna WI
    Posts
    4,855

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    Quote Originally Posted by cousinit View Post
    Hauling rates is the least of your problems.
    "Your" refers to the dairy industry, & profitability thereof. Nothing personal.

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