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USDA Economic Research Service (ERA) has just published a report on the food marking chain. The report is available at: http://www.ers.usda.gov/Publications/ERR99/ERR99.pdf
I have hardly gone through the report. Dairy begins on page 45. What seems not to be taken into account is the full dairy supply, as opposed to fluid milk. The Washington, DC area, and for that matter, the entire East is deficit of milk. There is a great deal of money spent hauling milk and dairy products East.