Ch. 27: Retail Margins

SUMMARY: This rule establishes minimum retail margins for milk sold in .

BACKGROUND AND STATUTORY FRAMEWORK

Pursuant to 7 M.R.S.A., Section 2954 the Maine Milk Commission (the Commission) is vested with the power to establish and change, after investigation and public hearing, the minimum wholesale and retail prices to be paid to producers, dealers and stores for milk received, purchased, stored, manufactured, processed, distributed or otherwise handled within the State of Maine. Further the law states that the minimum retail prices established for payment by consumers shall be based on the minimum wholesale price that retail stores must pay to dealers plus a rate of return to the retail store (retail margin) deemed just and reasonable by the Commission.

Retail stores are required by law to sell fluid milk at a price no lower than the minimum set by the Commission; they may, however, sell at a price higher than the minimum. The Commission issues a monthly Schedule of Minimum Retail Prices, which is based on the current price paid to producers for their milk (which can fluctuate from month to month) plus the current dealer margin plus the current retail margin.

This Order establishes new minimum retail margins for milk sold in retail stores. The retail margin is the minimum amount that a retail store must add to the cost of a container of milk, purchased from a processor, in order to cover the store’s direct costs and indirect costs (miscellaneous and overhead) associated with making the container available for final sale to the consumer. The Commission entered into a contractual agreement in 2025 with Herbein & Co. (now doing business as Cherry Bekaert) to conduct a study to determine whether the minimum retail margins for milk currently in effect should be changed. This Order is the result of that study

and indirect costs (miscellaneous and overhead) associated with making the container available for final sale to the consumer. The Commission entered into a contractual agreement in 2025 with Herbein & Co. (now doing business as Cherry Bekaert) to conduct a study to determine whether the minimum retail margins for milk currently in effect should be changed. This Order is the result of that study.

LOWEST PRACTICABLE PRICE

To achieve the lowest practicable price at which milk can be retailed and based on the results of the Study, the Commission establishes the following retail margins:

Gallon $0.4896

Half Gallon $0.2752

Quart $0.1679

10 Quart $1.1330*

3 Quart $0.3824*

* Containers no longer sold or used in the marketplace, but the Commission is still required to set a minimum retail price.

IV. EFFECTIVE DATE

This Rule becomes effective May 28, 2026 and shall be used thereafter in preparing the Schedule of Minimum Prices issued by the Commission.

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