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DAIRY ST R “All dairy, all the time”™
Volume 20, No. 4
What factors impact hauling charges?
USDA releases data for 2017 Upper Midwest rates By Krista Kuzma
krista.k@dairystar.com
ROSLYN, S.D. – After a talk with their milk cooperative eld representative, the Wasilk family is frustrated about milk hauling costs. The line item on their milk check will jump from under $1 per hundredweight to over $3 per hundredweight on May 1. That added in with the current milk price, plus lower premiums puts the family in a tough spot. “They have us in a bind,” said Wayne Wasilk, who farms in partnership with his son, Chad, milking 60 cows near Roslyn, S.D. “This could put us out of business.” Both of these numbers are on the high end of the spectrum according to data from the United States Department of Agriculture for milk hauling charges in the
upper Midwest marketing area. In 2017, hauling charges in the Midwest came out to an average of $0.20 per hundredweight. Corey Freije said that number can be deceiving. “The number that is typically billed to the dairy farmer is going to be a small number and it’s usually because the co-ops and the handlers are subsidizing it,” said Freije, an agricultural economist for USDA and the one who collected the milk hauling data. “Dairy farmers can look at their co-op and say they don’t want to pay any of the hauling. Then the co-op won’t charge them for the haul, but they may pay them (the dairy farmer) a lower gross in total.” The data is broken down into simple versus weighted averages
Turn to HAULING | Page 6
Milk price recovery could start in the fourth quarter Sharp analyzes dairy economy during CPDE seminar By Krista Kuzma
krista.k@dairystar.com
SIOUX FALLS, S.D. – Dairy producers along with others in the industry packed the room to standing room only at the “When Will It End? Examining the Dairy Downturn” seminar presented by Sarina Sharp on March 28 at the Central Plains Dairy Expo in Sioux Falls, S.D. “Better milk prices seem to be ahead. I want you to feel encouraged that we hit the low, and the worst is hopefully behind us,” said Sharp, dairy market analyst for Daily
Dairy Report. “I’m not projecting really high milk prices, but I am hopeful for better days ahead than the ones we just had.” Lower premiums are a big reason for the deteriorated dairy economy. “You’ve all seen your milk checks. You’ve all seen that happening. It’s a factor around the country,” she said. Lower premiums have been caused by a number of factors, including a glut of milk on the market and coops being forced to nd milk a home at a discounted rate. “That discount is being spread out over all the dairy producers in the co-op,” Sharp said. The increased amount of milk on the market also means Turn to MILK PRICE| Page 7
April 14, 2018
No kidding around at LaClare creamery Small farm becomes diversied business for Hedrich family By Danielle Nauman danielle.n@dairystar.com
MALONE, Wis. – What started as a family plan to be involved in Wisconsin agriculture nearly 40 years ago for Larry and Clara Hedrich has blossomed into a family-run enterprise that employs four of their ve grown children. LaClare Family Creamery’s roots were planted when Larry and Clara purchased a small farm in 1978 near Chilton, Wis. in Calumet County. With that farm, they inherited a small menagerie of animals, including two goats. Today, the Hedrichs have over 800 milking goats, with over 1,600 head total located on two farms in Malone, Wis. “Back then, the question was, ‘What can you do with your goat?’ Basically at that point in time you milked your goat, made your product and then convinced the consumer they would love it,” Clara said. Larry and Clara expanded their small herd of dairy goats as their children grew and became
DANIELLE NAUMAN/ DAIRY STAR
Clara Hedrich displays LaClare’s award winning Cave-Aged Chandoka and Evalon cheeses. LaClare Family Creamery is located near Malone, Wis. active in showing dairy goats in 4-H. Eventually, they set parameters for their children to come back to the farm. “We expected each of our
DANIELLE NAUMAN/ DAIRY STAR
LeClare Farms is currently building on to their creamery area to create new areas to store cheeses while they age.
kids to get an education and work for someone else for a while,” Clara said. “Then if they chose to, they could come home and join the family business.” Their oldest daughter, Anna, graduated from the University of Wisconsin-River Falls with a degree in dairy science and now manages the goat herd. Son, Greg, has a degree in technical education from the University of Wisconsin-Stout and oversees the business ofce and technology needs, and serves as the creamery manager. Katie has a marketing degree from Northern Michigan University and is LaClare’s head cheesemaker. Jessica has a marketing communications degree with an art minor from UW-River Falls and manages the café and retail section of the business, along with developing their graphics and Turn to LACLARE | Page 10