Gustafson's Dairy, Inc. - Page 11

               4.   Competition                                                       
               Petitioner's major competitors in the years in issue were              
          Dean Foods, Borden's (the largest milk processor in the country             
          during the 1980's), Sealtest, and Flav-O-Rich.  These are large,            
          publicly held corporations.                                                 
               The number of milk processors in northern Florida has                  
          steadily declined in the last 20 to 25 years.  Many of the                  
          processors which were similar in size to petitioner had gone out            
          of business or sold out to larger companies before or during the            
          years in issue.                                                             
               5.   Diseases                                                          
               Petitioner frequently reviewed the risk of exposure of its             
          cattle to diseases and contaminated feed with its veterinarian.             
          Although the threat to petitioner's cattle from individual                  
          diseases has changed over the years, the overall risk posed by              
          disease has increased as its cattle have become more concentrated           
          in smaller areas.  Some diseases have been cured, but the risk              
          from others such as bovine virus diarrhea, bovine leukemia virus,           
          and fescue foot has increased.  The fact that petitioner has an             
          open herd increases the herd's risk of disease because diseased             
          cows may be brought into the herd.                                          

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