B756: Factors Affecting the Unit Costs of Milk Distribution

Authors

Homer B. Metzger

Files

Description

Large variation in unit costs among firms performing essentially the same functions is characteristic of the milk distribution industry. This is so despite their operating under economic conditions which provide generally similar prices for goods and services needed for processing and delivery operations. Presumably the special character of the firms in terms of size, management, age of facilities, and equipment may account for cost differences. What the factors may be is import ant to understanding the ability of firms to operate profitably under a pricing system in which prices received for products sold are largely determined by the lowest cost at which milk can be distributed to consumers . It was the objectives of the analysis reported herein to 1) examine the variation In financial and physical factors thought to affect unit distribution costs and 2) determine the combination of factors which largely explain the differences in unit costs.

Document Type

Article

ISSN

1070-1494

Rights and Access Note

Rights assessment remains the responsibility of the researcher. No known restrictions on publication

Publication Date

1979

Publisher

Maine Agricultural and Forest Experiment Station

City

Orono

Keywords

Maine, milk, processing

Disciplines

Agricultural and Resource Economics | Economics

Recommended Citation

Metzger, Homer B.. 1979. B756: Factors Affecting the Unit Costs of Milk Distribution. Maine Agricultural and Forest Experiment Station Bulletins .
https://digitalcommons.library.umaine.edu/aes_bulletin/88