Feed Milling Charges

A couple of weeks ago I was with the mill manager of a local coop. He had just come from a meeting with his electricity supplier. The purpose of the meeting was to talk thru the implications of an upcoming 20% rate hike to the mill. Were there things in the mill that could be done to lower the consumption of electricity?

When you combine a 20% electric rate increase with the continued high cost of diesel fuel it suggests toll mills will be forced to raise their grind/mix/deliver fees. Some may accomplish this by an across the board increase while others will do it with existing contracts and fuel surcharges to the bill.

How much of an increase you’ll end up seeing will vary depending on the electric supplier’s rate structure and your facility distance from the mill, but it appears that a 10+% increase in grind/mix/delivery fees will be common this summer.

One thought on “Feed Milling Charges

  1. Ironically I have had 2 inquirys in past ten days from large wean fin producers for opinion in regard to feed manufacturing on farm vs. toll milling. These farming producers have more time to study their invoices and have added up the charges and converted to yearly expense. One client is strongly looking at a stationary mill with micro table. Prolonged negative and narrow margins bring out the pencil.!
    A portable pto driven grinder will be easier to walk away from than a full blown stationary mill. Walk before you run?
    Paul Meers Swine Consulting LLC

Leave a Reply

Your email address will not be published. Required fields are marked *