Dairy Processing - March/April 2023 - 46
SUPPLY CHAIN
Unique challenges
Transporting dairy products is no easy task and several
factors are making it that much more difficult and expensive.
by Kristen Putch | kputch@sosland.com
T
he transportation industry in the United States is
facing a multitude of challenges. Inflation is making
it increasingly difficult to keep costs down while
maintaining efficient operations. Rising freight rates and fuel
prices are creating cost pressures that are felt throughout the
system.
Transportation is a key element of supply chain logistics
for dairy processors. The industry has seen a shift in recent
years toward more efficient and cost-effective transportation
logistics in an effort to combat rising costs.
During a session on Transportation & Global Supply Chain
Disruptions at the 2023 USDA Agricultural Outlook Forum, which
took place in Washington, DC, on Feb. 23 and 24, Dr. William
Wilson, CHS chair in risk management and trading in the
Department of Agribusiness & Applied Economics at North
Dakota State University, Fargo, ND, was asked if he felt the
ongoing supply chain issues would ever be resolved.
" I think in the next five to 10 years, probably not, " Wilson
responded. " And the reason for that is, we have tremendous
46 MAR-APR 2023 | DAIRYPROCESSING.COM
geopolitical intervention in agricultural markets today, more
than I've ever seen. "
COMBATTING INFLATION
Inflation has pushed up the cost of goods, materials and
services throughout the supply chain, making it more difficult
for companies to remain cost-competitive.
Truck, rail, barge and ocean freight rates don't always react
to broad economic changes in the same way. While the entire
transportation industry struggled during COVID, normally
any number of factors may affect each mode independently,
regionally and globally.
" Transportation globally, regardless of whether it's agricultural
commodities or retail, has been a dumpster fire, " said William
Rooney, vice president for strategic development, Kuehne &
Nagel, Inc., at the USDA Agricultural Outlook Forum. " I've been
in the business for 50 years in June and I tell people all the time if
I added up all the mayhem that happened in the first 48 of those
50 years and multiplied it by five it's still would not come close to
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Dairy Processing - March/April 2023
Table of Contents for the Digital Edition of Dairy Processing - March/April 2023
Dairy Processing - March/April 2023 - Intro
Dairy Processing - March/April 2023 - 1
Dairy Processing - March/April 2023 - 2
Dairy Processing - March/April 2023 - 3
Dairy Processing - March/April 2023 - 4
Dairy Processing - March/April 2023 - 5
Dairy Processing - March/April 2023 - 6
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