milk money

here’s a standard milk transaction:

jimmy goes to the ATM, takes out $20, drives to stop&shop grocery store and buys a gallon of milk for $3.65.

here’s who got paid*:

  • the ATM company who contracted with the bank;
  • the grocery store employees (cashier, shelf stockers, management team);
  • stop&shop corporate (distribution, payroll, accounting, management, owners);
  • the company stop&shop pays to do their cash registers and credit card terminals;
  • stop&shop’s insurance company;
  • stop&shop’s electric company;
  • stop&shop’s internet company;
  • a bottling/packaging company;
  • a dairy farmer.

so how much does the dairy farmer make on 1 gallon?

about $1.

rhe product producer took 27.7% of the transaction; middlemen took 72.3%.

* directly or indirectly; list is neither exhaustive nor consistent for every transaction.

photo by Nastya Maxymova on unsplash

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