Advanced Search
MyIDEAS: Login

Impacts Of Don In The Malting Barley Supply Chain: Aggregate Costs And Firm-Level Risks

Contents:

Author Info

  • Johnson, D. Demcey
  • Nganje, William E.
Registered author(s):

    Abstract

    DON is a toxic byproduct of fusarium head blight (FHB), a fungal disease of small grains. Beginning in 1993, a prolonged outbreak of FHB occurred in the Upper Midwest, the traditional source of most six-rowed malting barley produced in the United States. Price discounts associated with DON in barley have been significant. This paper has two objectives. The first is to estimate the impact of DON on the value of malting barley grown in the Upper Midwest. Using crop quality data, we use a linear programming model to derive optimal blends of barley supplies, given discount schedules and the distribution of quality factors. The premise is that blending activities, on a regional scale, allow a larger fraction of the crop to be sold as malting. The second objective is to assess the risks associated with DON in the context of a firm-level blending model. We frame a nonlinear optimization problem in which an elevator seeks to maximize the expected sales value of the barley in its bins. Price discounts for several quality factors are incorporated in the analysis, along with probability distributions for DON. Treating DON as a random quality factor adds some interesting complexity to the standard grain blending problem. Attachments: aem187a.xls aem187b.xls aem187c.xls aem187d.xls

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/23103
    Download Restriction: no

    Bibliographic Info

    Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agricultural Economics Miscellaneous Reports with number 23103.

    as in new window
    Length:
    Date of creation: 2000
    Date of revision:
    Handle: RePEc:ags:nddmrs:23103

    Contact details of provider:
    Postal: PO Box 5636, Fargo, ND 58105-5636
    Phone: (701) 231-7441
    Email:
    Web page: http://www.ext.nodak.edu/homepages/aedept/
    More information through EDIRC

    Related research

    Keywords: barley; malt; DON; fusarium head blight; grain quality; blending; Production Economics;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Diersen, Matthew A. & Wilson, William W. & Johnson, D. Demcey, 1995. "Quality Uncertainty and Grain Merchandising Risk: Vomitoxin in Spring Wheat," Agricultural Economics Reports 23365, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Johnson, D. Demcey & Flaskerud, George K. & Taylor, Richard D. & Satyanarayana, Vidyashankara, 1998. "Economic Impacts Of Fusarium Head Blight In Wheat," Agricultural Economics Reports 23437, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Nganje, William E. & Koo, Won W. & Johnson, D. Demcey & Park, Joon J. & Taylor, Richard D., 2000. "Operational Efficiency Of Us/Canada Wheat Pool: A Game Theory Analysis," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36439, Western Agricultural Economics Association.
    2. Johnson, D. Demcey & DeVuyst, Eric A. & Nganje, William E., 2000. "Supply-Side Risks And Malting Barley Procurement And Storage," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36367, Western Agricultural Economics Association.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:nddmrs:23103. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.