Document Type

Thesis - Open Access

Award Date


Degree Name

Master of Science (MS)

Department / School



The fluid milk industry has encountered many drastic changes in marketing procedures since its conception, and it would be remiss to suppose that the ultimate in marketing methods has been obtained. The present era is not characterized by the absence of further market structure changes. One such change is the movement toward producer-processor dairy units. This concept is not new; in fact, it dates back to the infancy of the industry. The present producer-processor units, however, are of a magnitude and degree of technology not envisioned by their historical forbearers. The primary differences between the past and present producer-processor units have enabled the present units to influence the modern milk industry through a greater geographic area of distribution. At present, many large dairies near metropolitan areas are producing, processing, and marketing milk under the same ownership and general management. Recently, interest has developed among some of the larger dairy farms in South Dakota for integrated producer-processor units. A business venture which includes an integration of the producing and processing operation must be tempered with sound economics. South Dakota dairy producers do not necessarily have information necessary to evaluate the feasibility of placing processing units on their farms. This study was made to afford dairy farmers the approximate processing costs to assist them in their decision.

Library of Congress Subject Headings

Milk trade


Includes bibliographical references



Number of Pages



South Dakota State University