Dairy farmers receive _____ percent of the retail sale price of a half-gallon of milk?

The correct answer is 26 percent, which reflects the percentage of the retail sale price of a half-gallon of milk that dairy farmers typically receive. This figure is important because it highlights the financial dynamics within the dairy industry and demonstrates how much of the consumer's payment for milk is actually passed back to the farmers who produce it.

Understanding the economics of milk pricing is crucial for stakeholders in the dairy supply chain, including farmers, processors, and marketers. The relatively low percentage indicates that while dairy farmers contribute significantly to the production of milk, a substantial portion of the retail price covers processing, transportation, marketing, and retailer margins. This percentage can fluctuate based on various factors such as market conditions, demand, and supply chain efficiencies.

Awareness of this statistic can help farmers and industry professionals navigate pricing strategies and advocate for policies that might better support dairy producers in capturing a fairer share of the retail dollar. This knowledge is also useful for consumers who may want to understand the value that farmers provide in producing milk.