Milk Chocolate Production Cost Analysis 2020

Milk chocolate is a solid chocolate made with milk added in the form of powdered milk, liquid milk, or condensed milk. In 1875, a Swiss confectioner, Daniel Peter, prepared the first solid milk-chocolate using condensed milk, which had been invented by Peter's neighbour in Vevey, Henri Nestlé.

European Union regulations have specified a minimum of 25% cocoa solids in milk chocolates. Nevertheless, an agreement was reached in the year 2000 that supported an exception from these regulations in the UK, Ireland, as well as in Malta, where milk chocolate can contain only 20% cocoa solids. Such chocolates are labelled family milk chocolate elsewhere in the European Union. 

The US government, meanwhile, wants a 10% concentration of chocolate liquor in milk chocolate. The Hershey Company is the largest yielder of milk chocolate in the US. The actual Hershey method is a business secret. Still, experts conjecture that the milk undergoes partial lipolysis to provide butyric acid. Then the milk is pasteurized to stabilise it for use. This method provides the product with a distinct taste, to which the public of the United States has developed a strong affinity.

Procurement Resource provides an in-depth cost analysis of Milk Chocolate production. The report incorporates the manufacturing process with detailed process and material flow, capital investment, operating costs along with financial expenses and depreciation charges. The study is based on the latest prices and other economic data available. We also offer additional analysis of the report with detailed breakdown of all cost components (Capital Investment Details, Production Cost Details, Economics for another Plant Location, Dynamic Cost Model).