What is the Difference Between the Costs of Reconstitution vs. Fresh Milk Processing?

Abstract

The purpose of this study is to estimate the difference between the in-plant cost of producing partially reconstituted milk products versus the cost of producing fresh milk products. This cost difference, which is referred to as the comparative cost of reconstituting milk, is calculated under several assumptions about how milk is processed ( the operating environment) and what prices are paid for inputs (milk, labor, etc.) and received for dairy outputs.