Like many dairy cooperatives today, Upstate Niagara Cooperative (UNC) in Lancaster, New York, faces the ongoing challenge of rising hauling costs and consolidations within their milk hauler base. The co-op’s growth combined with the ongoing trend in plant and farm consolidation means milk is often moved farther to get to market.
Additionally, the increased distance to market combined with rising driver wages and equipment costs put more financial pressure on haulers, triggered requests for rate increases and, in some cases, threatened hauler viability and the ability to pick up member milk.
Combined, these factors resulted in UNC operating with a hauling deficit, where the amount collected from members to pay for hauling fell short of actual payment to haulers.
UNC urgently needed to complete a detailed review of its hauling program, but with significant technology and business initiatives underway, the co-op lacked the staff and time required to conduct an internal hauling audit.
Learn how UNC solved this problem by reading the full case study below.
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“It was important to the co-op to give its haulers rates, that while competitive, would also allow them to be sustainable into the future. We also want to give our members a transparent, fair, and accurate hauling contribution program, in addition to eliminating hauling subsidies.”
