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Abstract
A major structural change is occurring in the food chain segment of milk marketing channels in the North Central Region. Food chains increasingly are initiating central milk programs which represent various degrees of integration. Respondents in a survey gave savings obtained as the major reason for having central milk programs. Sources of savings included dealing with fewer suppliers, lower milk costs, and reduced delivery services. Savings in distribution costs was the main reason for chains operating their own milk plants. If the forces encouraging integration by food chains continue at the rate that existed at the time of the survey, 1968-69, a continuation of the recent structural trend can be expected.