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The distribution system for dairy products is changing rapidly. One method is to build distribution facilities for serving consumers in areas where plants had previously existed but have gone out of business or in newly established distribution areas. This solution is particularly applicable if the distribution costs of the processing plant exceed the cost of building and operating a distribution facility. This research report provides a detailed description of a model distribution facility, work methods, and labor requirements for its efficient operation and the potential benefits that can be derived from such an operation. The plan shows the location of the main building and the supporting installations on the site. This information can be used as a guide by dairy plant operators who plan to build new distribution facilities.