Labor Productivities and Costs in 35 of the Best Fluid Milk Plants in the U.S.
Erba, Eric M.; Aplin, Richard D.; Stephenson, Mark W.
This report summarizes the findings of the Cornell study on Fluid Milk Plants. All 35 plants studied were medium or large size, well-managed and highly respected in the industry. Although they are considered to be among the best fluid operations in the United States, labor productivity and costs varied widely both in the plants and on the wholesale distribution routes. Labor productivity in the 35 plants averaged 174 gallon equivalents per hour but varied from approximately 110 gallons per hour to more than 280 gallons per hour. Total plant cost (not including cost of ingredients or packaging materials) also varied widely, averaging 21¢ per gallon equivalent and ranging from a low of about 13¢ per gallon to a high of approximately 27¢ per gallon.
Charles H. Dyson School of Applied Economics and Management, Cornell University