FLORIDA DAIRY MARKETING COOPERATIVES' TRANSFER COST ASSOCIATED WITH NON-UNIFORM DELIVERY SCHEDULES
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The economic basis for alternative delivery schedules between Florida Dairy Marketing Cooperatives (FDMCs) and fluid milk processors are analyzed, and the costs and benefits of improved coordination between these two market stages are highlighted. The additional costs incurred by FDMCs were they to switch from a uniform delivery schedule to various non-uniform delivery schedules are discussed. The seven-day uniform delivery schedule with the $0.25 discount scheme on total volume decreases FDMCs' net revenues by $0.1433 per hundredweight (cwt), compared to a five-day delivery schedule with no price discounts.