How much does it cost to produce a gallon of milk?
Input costs, such as processing labor, delivery and raw product costs vary considerably. Even the type of milk, i.e., whole milk, reduced fat, lowfat or skim will have an impact on the final cost. As such, the cost of producing a gallon of milk is a moving target. Nonetheless, using data from May 2008, we estimate that it costs between $1.96 and $2.35 for processors to produce a gallon of milk, ready to get to the retail store.
