Date of Award:


Document Type:


Degree Name:

Master of Science (MS)


Applied Economics


Rondo A. Christensen


Due to the growth of milk marketing areas in the Intermountain West, a study was made to determine the most advantageous allocation of producer milk to twelve selected processing demand areas and to calculate location differentials between these same markets. A theoretical determination of location differentials and of the allocation of milk supply areas to processing centers were made using supply-push and demand-pull price alignment models developed by Associated Milk Producers, Inc., for the months of November 1979 and June 1980. Grade A producer mil k from the six member cooperatives of Western Dairymen' s Cooperative, Inc., was used in the study.

From the computed location differentials, a framework was developed from which milk cooperatives in the Intermountain West could use to base future policy decisions.