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The objective of this study is to provide an estimate of the theoretically lowest achievable costs of processing and distributing milk in Maine. This processing and distribution margin (referred hence as "margin") is estimated for a state-of-the-art processing plant assumed to be located in the Portland, Maine, area. The plant is assumed to produce and distribute a line of products including white milk, chocolate milk, orange juice, and other fruit drinks, and to distribute additional purchased products such as cheeses and yogurts. This report will present information for four plants to better study the impact of plant size and production scope on costs.
Maine Agricultural and Forest Experiment Station
Agricultural Economics | Dairy Science
Dalton, T.J., G.K.Criner, and J. Halloran. 2001. 2000 milk processing costs in Maine. Maine Agricultural and Forest Experiment Station Technical Bulletin 181.