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Economies of Scale in der Produktion versus Diseconomies im Transport: Zum Strukturwandel im Molkereisektor

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  • Boysen, Ole
  • Schroeder, Carsten

Abstract

In this article, we simulate structural change within the German dairy sector employing a sector-wide optimization model. As a result, we obtain cost minimizing structures of the dairy sector for various scenarios differentiated by time horizon and level of transportation cost. We demonstrate that the model is capable of explaining the current trend which is characterized by a decrease in the number of dairies while average capacity is increasing. However, this development is less pronounced if transportation cost rises relative to other costs.

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Bibliographic Info

Article provided by Humboldt-Universitaet zu Berlin, Department for Agricultural Economics in its journal German Journal of Agricultural Economics.

Volume (Year): 55 (2006)
Issue (Month): 3 ()
Pages:

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Handle: RePEc:ags:gjagec:97183

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Related research

Keywords: capacitated facility location problem; market structure; transportation; Agribusiness; Production Economics;

References

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  1. Helen Caraveli & W. Bruce Traill, 1998. "Technological developments and economies of scale in dairy industry," Agribusiness, John Wiley & Sons, Ltd., vol. 14(4), pages 311-319.
  2. S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
  3. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
  4. Klaus Drescher & Oswin Maurer, 1999. "Competitiveness in the European dairy industries," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 163-177.
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Cited by:
  1. Bitzer, Jurgen & Geishecker, Ingo, 2006. "What drives trade-related R&D spillovers? Decomposing knowledge-diffusing trade flows," Economics Letters, Elsevier, vol. 93(1), pages 52-57, October.
  2. Delzeit, Ruth & Britz, Wolfgang & Holm-Müller, Karin, 2011. "Modelling regional input markets with numerous processing plants: The case of green maize for biogas production in Germany," Discussion Papers 162892, University of Bonn, Institute for Food and Resource Economics.
  3. Ruth Delzeit & Ulla Kellner, 2011. "How location decisions influence the transport cost of processed and unprocessed bioenergy digestates: the impact of plant size and location on profitability of biogas plants in Germany," Kiel Working Papers 1730, Kiel Institute for the World Economy.

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