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 The large increase in number of distributors can be explained
in a number of ways. Part was a shift in classification because of
a change in method of operation. Some of the national processor-
distributors closed plants in small towns to consolidate the proc-
essing of the milk in larger plants. They then handled their business
in these areas through distributor units. During the period some
people changed from producer-distributors to distributors.

 The rapid growth of suburban areas was a factor in the increase
in number of distributors. This has resulted in greater distances
from existing processing plant locations to points of consumption.
Distributing branches were open in these areas. It is apparently
considered more efficient to process the milk in larger plants but
to operate retail and wholesale delivery routes from a central point
in or near consumption areas.

 Facilities for processing dairy products are located throughout
the State (Fig. 3). Most are within the more highly urbanized centers
of population and are within reasonable shipping distance from present
supply areas. Producer-distributors generally are also located with-
in the heavily populated counties. The greatest number of producer-
distributors werein Northeast Florida. Twenty-one of the 46 such
licenses issued in 1959 were to firms in that market. Brevard,
Charlotte, Monroe, Seminole and several other counties, which have
experienced large urban population growth in recent years, are
served only by firms which distribute fluid milk. Many of these
firms are owned and operated by multi-unit processing and distri-
buting companies.


 Size of Firms

 Dairy firms may be stratified by several measures of size. The
fluid milk processing capacity of plant facilities may be used as one
measure. A second measure may be average daily sales of fluid milk.
The first measure is probably best for determining the variation
in efficient use of processing capacity by size of firm. To show
the relative market shares of various size firms, the second is more
suitable.

 Firms were grouped into three size classes-small, medium and
large-on the bases of fluid milk processing capacity of plant facilities
in an eight-hour period. Plants with facilities to process less than
2,500 gallons in an eight hour period were classified as small;
2,500 to 9,999 gallons, medium and 10,000 gallons or more as large.
Small firms predominated in Northeast, Northwest and Central Florida.