Date of Award:


Document Type:


Degree Name:

Master of Science (MS)


Applied Economics


Rondo A. Christensen


Significant changes have taken place in the distribution of dairy products during recent years. These changes have been marked by the increased importance of milk distribution through grocery stores, specialized dairy stores, institutions such as schools and military establishments, and the corresponding decline of home delivery. Many small food stores have been replaced by large, self-service supermarkets, most of which are operated by chain store merchandisers wielding increased market power. Specialized milk delivery systems have been developed to meet the needs and demands of supermarkets, such as limited service or dock delivery. Because of differences in costs of servicing various customers, volume delivered, and competitive pressures, wholesale price discounts have been introduced and extensively used. Dairies have consolidated or merged operations to capture economies of scale in processing and distributing and to increase market power. More mergers will likely follow. The areas served by processing plants have expanded as a result of the development of super highways, mechanically refrigerated trucks, and increased use of single service containers.



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