Cost Per Litre Calculator — Dairy Processing Cost Breakdown
Calculate total cost per litre of processed milk by breaking down raw material, labour, utilities, and overhead costs. Free online dairy plant cost calculator.
What is Cost Per Litre?
Cost Per Litre (CPL) is the total cost incurred to process one litre of milk, from raw milk procurement to packaged final product. It is the foundational metric for dairy plant profitability analysis.
CPL = Total Costs (₹) / Total Volume Processed (Litres)
How to Use This Calculator
- Enter the raw milk procurement cost (₹/litre)
- Enter daily/monthly utility costs (electricity, steam, water, fuel)
- Enter labour costs (wages, benefits, contract labour)
- Enter packaging costs per litre
- Enter overhead costs (maintenance, admin, depreciation)
- Enter total volume processed
- The calculator computes CPL by component and total CPL
Cost Components
1. Raw Milk Cost
The largest single component — typically 70–80% of total CPL for fluid milk.
Raw Milk Cost (₹/L) = Procurement Rate × (1 + Transport %)
2. Utilities Cost
- Electricity: 0.08–0.15 kWh/litre for pasteurized milk; up to 0.4 kWh/L for UHT
- Steam: 0.05–0.12 kg/litre for pasteurization
- Water: 1.5–3.0 L per litre of processed milk (including CIP)
- Refrigeration: 0.05–0.10 kWh/litre for chilling
3. Labour Cost
Varies by plant capacity and automation level.
Labour Cost/Litre = Total Labour Cost (₹) / Total Volume (L)
4. Packaging Cost
| Pack Type | Typical Cost Range |
|---|---|
| Poly pouch (500mL) | ₹1.5–2.5 |
| Tetra Pak (1L) | ₹4–8 |
| HDPE bottle (1L) | ₹6–12 |
| Bulk tanker (ex-plant) | ₹0.20–0.50 |
5. Overhead Cost
Includes depreciation, insurance, administrative expenses, and maintenance provisions.
Typical overhead: ₹0.50–2.00/litre depending on plant scale.
Typical CPL Benchmarks (India)
| Plant Capacity | Fluid Milk CPL (ex. raw milk) |
|---|---|
| < 10,000 LPD | ₹3.0–5.0/litre |
| 10,000–50,000 LPD | ₹2.0–3.5/litre |
| 50,000–200,000 LPD | ₹1.5–2.5/litre |
| > 200,000 LPD | ₹1.0–2.0/litre |
Processing cost only, excluding raw milk procurement.
CPL Reduction Strategies
- Increase capacity utilisation — fixed costs spread over more litres
- Reduce utility costs — energy audits, VFD drives, LED lighting
- Minimise losses — reduce milk spills, rework, and rejection
- Automate where viable — reduce labour cost per litre
- Negotiate packaging — volume discounts on pouches and cartons
- Optimise CIP cycles — reduce water and chemical consumption