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Journal of Dairy Science Vol. 62 No. 11 1705-1712
© 1979 by American Dairy Science Association ®
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Estimating Values of Milk Components to a Dairy Manufacturer1

George W. Ladd and John R. Dunn2

Department of Economics, Iowa State University, Ames 50010

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.

FOOTNOTES

1 Journal Paper No. J-9474 of the Iowa Agriculture and Home Economics Experiment Station, Ames, Iowa. Projects No. 1903 and 2282.

2 Economics, Statistics, and Cooperatives Service of US Department of Agriculture.






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Copyright © 1979 by the American Dairy Science Association ®.