Date of Award:

5-1956

Document Type:

Thesis

Degree Name:

Master of Science (MS)

Department:

Applied Economics

Department name when degree awarded

Agricultural Economics

Committee Chair(s)

Wells Allred

Committee

Wells Allred

Committee

Roice Anderson

Abstract

Many of the fluid milk processing plants in Utah are relatively small. The typical small plant in Utah is generally family operated with some hired help. Although most of the small plants are individually owned, some are operated as partnerships. Often the same man picks-up, processes, and then delivers the milk. Some of the processors also own dairy herds. In these cases the same man performs all the functions necessary to carry the milk products from the farm to the consumer's door. It is not uncommon to find the plant owner and manager performing all these duties himself.

Larger floor space and the purchase of more modern equipment is often not justified in the small plant because of small volume. As a result, some small plants process milk in crowded space, bottle milk with a hand machine, and wash the bottles with a motor-driven brush. Some small plants have purchased modern equipment in order to compete with the larger dairies in quality control and consumer preference. However, the small plant usually does not market enough to keep unit costs low.

The small processors are forced to diversify and integrate their business to compete with the larger dairies. Fluid milk is the principal product, but in addition some of the small plants process other products such as ice cream, chocolate milk, cottage cheese, low fat milk, and orange ade.

Milk is supplied to small plants from farmer-producers who are usually located within a few miles of the plant. In some cases part of the milk comes from the processor's own dairy herd.

The small processor's principal market is house to house delivery. In some cases the milk products are sold through a sales room, owned and operated in conjunction with the processing plant. In some areas milk is bottled in half pints and delivered to school lunch programs, and a small percent is sold to retail stores.

In contrast to small plants described above, there are about 6 fluid milk plants in Utah that operate on a large scale basis. A plant manager or superintendent is hired and devotes full time to administrative duties. Milk is processed by a crew of men in a modern and up-to-date plant with modern equipment. Another crew of men deliver the milk both on wholesale and retail routes. A fleet of trucks is necessary to pick up and distribute the large volume of milk handled. The raw milk is obtained from farmer-producers located up to several hundred miles from the plant. Some of this same milk is later trucked back to these outlying communities as cartoned homogenized milk. The large dairy handles a variety of other dairy products as well.

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