Cost of cattle transportation means thinner margins despite cheaper fuel

A livestock economist says the decline in diesel prices has provided relief to cattle transportation costs.

Elliot Dennis with the University of Nebraska-Lincoln says this has had a significant impact on margins.    “Interest rates are rising, cattle prices are rising and now we have an additional thing that we’re bringing to light. This decision about transportation in the past may not have mattered, it really is mattering going forward.”

Dennis says publicly available pricing for hauling has ranged from $2 to $4.50 per loaded mile, but that depends on type of livestock, length of trip, the load fill, length of trailer and weather conditions.  

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