An Economic Analysis of Fluid Milk Processing in Alaska

Abstract

Alaskan fluid milk is processed for market by a two-firm industry. In Delta Junction, the Northern Lights Dairy obtains milk from two producers and services an Interior market from Delta to Fairbanks. In Anchorage , Matanuska Maid (M-M) obtains milk from II producers and markets its products largely in southcentral Alaska and , to a less extent, in Fairbanks. Direct competition between the two is minimal. The principal source of competition is preprocessed fluid milk shipped in from Puget Sound.