-3-


This included current milk utilization patterns and net balance of
supplies and consumption in the various milk marketing areas.
 4. To evaluate the probable effects of factors associated
with fluid milk consumption and to estimate prospective demand for
fluid milk in Florida markets.


 Method of Study

 Delineation of State Milk Marketing Areas.--The bulkiness
and perishability of fluid milk have in the past resulted in prod-
uction areas (milksheds) being located close to centers of con-
sumption. Market areas were thus local in nature. In recent years,
many changes in the technology of assembling, processing and marketing
of milk have tended to reduce the advantageous position of local
milk producers. These have tended to widen the production area
around a market and also the distribution area for milk plants.

 In recent years, considerable shifts have occurred in the
location of dairy farms in Florida. However,milk production and
marketing in the state are still oriented primarily to the needs of
individual markets. Therefore it seemed desirable to relate the data
to individual marketing areas. Since such areas for fluid milk were
already delineated by state and federal milk marketing control
agencies, it was thought best in this study to use the sane de-
lineation of marketing areas as used by the control agencies. The
1959 geographic boundaries of the marketing areas are shown in
Figure 1. Only one marketing area, Uorthwest Florida, was un-
regdlated by any governmental body at the time of the study!3/
The Florida Milk Commission administered three markets--Uortheast
Florida, Central Florida and the Tampa Day areas. In Southeast
Florida, the farm pricing of milk was regulated by a federal
marketing agreement and order.A/



 -/In September, 1961, the Tallahassee Milk Marketing Area
was established by the Florida Milk Commission as a result of a
referendum of producers. The counties in the area are: Day,
Calhoun, Dixie, Franklin, Gadsden, Gulf, Holmes, Jackson, Jefferson,
Lafayette, Leon, Liberty, Madison, Taylor, Wakulla and Washington.
In November, 1961, the pensacola Milk Marketing Area was established
by the same procedure. The area includes Escambia, Okaloosa, Santa
Rosa and Walton Counties.

 4/The order covers the counties of Palm Beach, Broward,
Dade and Monroe. Farm prices for milk sold by distributors in the
other seven counties in the Southeast market area are not regulated
by any agency.