i working at the cuttle farm and use same initial requirement for prudence.I want to calculate ultimate price of production.I need to best an simple formula of pric product.
For calculation of milk price per unit, you have take into current rate of different inputs (such as fodder/silage, land lease rate, fixed and variable cost etc.). Price will depend upon location according to price of inputs, labour cost and off course other factor also.
In the UK some supermarkets pay farmers on a cost plus system so the cost of production is calculated. Some of the numbers derive from DairyCo publications like this one. There is a huge range of efficiency.
As you know dairy farms can vary so much from one farm to another that one, therefore equation included all variables would be difficult to build .In Agriculture economic , you have to determine variable costs ,fixed costs, opportunity Costs.also for calculating milk production breakeven level , you can use Chand 2002 formula.
Chand, K., Singh, K. and Singh, R.V. 2002. Economic analysis of commercial dairy
herds in arid region of Rajasthan, Indian journal of agricultural economic.
As you know computing of the price has a specific structure and it is not impossible if you have a right data. however, note that hidden costs have much more significant effect on the milk price and computing of these are very complex. I think you can get it good idea to calculate approximately of milk price.