Estimating Values of Milk Components to a Dairy Manufacturer

Abstract

A method is developed for determining money values per point of protein and fat in a processing plant. The value per point of solids is computed from the effect of variation in solids test on the firm's profits. It can be extended to apply to solids-not-fat instead of protein and to various manufactured products. The procedure is presented in worksheet form and applied to a cheese plant. In the plant studied, the maximum premium per point of protein per 100 kg of milk is $.2891. © 1979, American Dairy Science Association. All rights reserved.