Economic Research Institute Study paper
Utah State University
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At one time most milk markets were local in nature. The assembly, processing, and distribution of milk, and the balancing of supplies with demand , all took place in relatively small geographic areas. Subsequent advances in technology, economies of size, and competitive forces have led to fewer but larger more centrally located processing plants, and to the balancing of milk supplies with demand on a wider scale. As a result, most milk markets are now statewide, if not regional in structure.
Christensen, Rondo A., "Impact of Transportation, Processing, and Energy Costs on Optimum Number, Size, and Location of Dairy Plants in the Intermountain West" (1987). Economic Research Institute Study Papers. Paper 459.