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-1.2 percent. The total production in all markets in both months was
195,262,000 pounds of fluid milk. Consumption was 197,331,000 pounds,
which was 1.0 percent greater than Florida's over-all production. Only
relatively small volumes of both raw and processed fluid milk products
moved between markets. The one exception was the Central Florida
region which, because of its mid-state location, includes many counties
which are closer to processing plants in other markets. Therefore,
there tends to be greater movement of both raw and packaged milk
between Central Florida and other adjacent market areas.

 Two projections of the 1970 population in Florida were available.
The lower estimate was for a total of 6,500,000 and the higher was
7,142,000 population by 1970. On the basis of an estimated per capital
consumption in 1959 of 239.1 pounds of fluid milk,aggregate demand was
projected to 1970. If population reached 6,500,000, the projected
demand for fluid milk products would by 1,544.2 million pounds. Should
the higher projection of 7,142,000 occur, demand would then approximate
1,707.7 million pounds of fluid milk.

 These estimates are, of necessity, based on the assumptions of
(1) individual and relative stability-of prices for fluid milk products
and currently available substitutes, (2) constant or nearly constant
per capital consumption rates, (3) no significant income-consumption
effects and (4) an increase in Florida population to 6,500,000 or to
7,142,000, Individual markets thus will experience demand increases
proportional to their share in population growth in the State from
1960 to 1970.


 Conclusions

 On the basis of the data collected, several conclusions may be
drawn regarding the location, volume and movement patterns for fluid
milk supplies. First, in all but one market area, production is
oriented almost entirely to local markets within the area. A large
portion of production was generally concentrated in the counties with
the largest population. Second, some variation existed in market
balances of producer supplies and consumption, with an over-all small
deficit for the State. Third, the volume of raw and processed fluid
milk moving between markets was insignificant.

 In 1959, a low level of utilization of fluid milk processing
facilities existed in most markets for all size firms. However,
unnecessary additions to existing facilities resulting from over-
optimistic estimates of potential demand can, in the future, tend to
perpetuate inefficiencies and resultant high costs per unit of output
for processing and distributing fluid milk. Both producers and dairy
firms would thus benefit from adequate demand projections in order to
better solve problems concerned with optimum supply area and also
location and size of processing plants.