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FARMERS EARN ABOUT HALF OF RETAIL PRICE FOR WHOLE MILK
Jun. 18, 2025
Source: USDA news release
The farm share for a gallon of whole milk--the ratio of what dairy farmers received (farm value) to what consumers paid in grocery stores (retail price)--fluctuated between 47 and 56 percent over the past decade. Whole milk is processed for beverage use from cow's milk and is assumed to be, on average, 3.3 percent milkfat.
In 2024, the farm share for whole milk increased to 49 percent from 47 percent in the previous year, resulting from the farm value increasing 9 cents to $1.97 per gallon and the retail price dropping 5 cents to $3.98 per gallon. Many factors contribute to retail food prices besides money paid to farmers for commodities, including costs for processing, packaging, transportation, and retailing.
From 2015 to 2024, the retail price for whole milk ranged from $2.90 to $4.09 per gallon, while the farm value ranged from $1.51 to $2.27 per gallon.
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