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tion of population 46/ in the more southerly markets possibly tended to
make the few large plants the most efficient size processing unit in
those areas. This is a result of the economics of large-scale fluid
milk processing facilities.

 In addition to the sizeable market share of fluid milk sales
held by large firms, they marketed an even greater portion of the
fluid milk by-products consumed in each area. In every market, small
dairy firms sold a smaller portion of skim milk products, fluid creams
and cottage cheese than of fluid milk.47/ The continued practice of
many small dairy firms of offering a full line of dairy products with
relatively small sales volumes for most by-products may well be ex-
cessively expensive. In such small firms, however, the problem of
joint costs for many products makes for complex decisions as to adding
or dropping one.


 Milk Distribution Methods


 Marketing Channels

 The distribution and final sale of dairy products to consumers
may be accomplished through several alternative marketing channels
(Fig. 4). Processing and distributing firms, including producer-
distributors, may obtain their supplies of raw milk, cream and other
dairy ingredients from numerous sources. Dairy farmers, each shipping
to a single plant, are the normal origin for the largest part of milk
supplied to most dairy processing plants. Temporary supply sources and
emergency milk shipments during periods of short production may origin-
ate with milk brokers, other processing firms and farmer cooperative
bargaining associations. These firms may arrange shipments from pro-
duction areas within Florida or from other states. An additional
source of supply to producer-distributors is milk produced by herds
on their own farms.4"/

 Processing and distributing firms use many combinations of mar-
keting channels to move packaged dairy foods to consumers. The most
direct channel is retail sales of products to consumers from company-
owned retail dairy stores or house-to-house delivery routes. Firms
also sell at wholesale directly to retail food outlets (grocery stores,
eating places, soda fountains) institutions (hospitals, schools) and


 4Z/The only exception being a slightly smaller portion of cream
than fluid milk sales by large firms in Central Florida.

 48/Volumes and relative amounts of milk supplies received from all
sources will be presented in the next section.