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Due to state laws that establish minimum prices, the price of milk can vary greatly by location. The profit on milk can be affected by price wars on both the raw milk and wholesale levels. Raw milk, on average, costs between 30% and 40% of the eventual retail price.

The nationwide averages in late 2010 (price per gallon):

Whole Milk --- $ 3.04

Reduced Fat - $ 2.95

Lowfat Milk --- $ 2.93

Skim Milk ----- $ 2.88

The highest prices were in Mobile, AL ($ 4.08) and New Orleans, LA ($ 3.98 - Walmart).

The lowest prices were in Phoenix, AZ ($ 2.10) and Detroit, MI ($ 2.24).

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