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Outer-Market Distribution of Milk in Paper Containers in the North Central Region¹

ABSTRACT

Sale of milk in paper cartons outside local markets is a trend that may have marked effect on milk distribution systems. The influence upon the industry is probably more important than the amount of milk involved. Separate and distinct markets for bottled milk have all but disappeared. The breakdown and overlapping of market areas have changed competitive conditions, the marketing structure and distribution practices.

Pasteurized and inspected milk has been made available in many new areas, and sale of milk through stores has been encouraged. These conditions have increased fluid milk consumption in many places and have stimulated the development of new outlets for packaged milk, which are especially important in periods of surplus.

A study has been made of 588 plants packaging milk in paper cartons in 13 north central states. Of these, 488 were selling paper-cartoned milk outside their local markets. The study defines the local market as everything within a line drawn five miles beyond the limits of the city or town in which the milk plant is located.

¹ The complete report of this study is available from state colleges in the participating states — Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

² Federal-State Cooperative Agent with the North Central Regional Dairy Marketing Research Project. Department of Agricultural Economics, University of Illinois, Urbana.