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Sorting and Blending Under Quality Uncertainty: Application to Wheat Protein

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  • Johnson, D. Demcey
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    Abstract

    Quality uncertainty is of considerable interest to the grain industry. In this paper, uncertainty is incorporated in a model of grain blending decisions. A mixed-integer, nonlinear optimization problem is developed. Simulations illustrate the effect of crop quality on blending decisions, and the effect of blending activities on the distribution of protein within a wheat marketing channel.

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    File URL: http://purl.umn.edu/36316
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    Bibliographic Info

    Paper provided by Western Agricultural Economics Association in its series 2005 Annual Meeting, July 6-8, 2005, San Francisco, California with number 36316.

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    Date of creation: 2005
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    Handle: RePEc:ags:waeasa:36316

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    Related research

    Keywords: Industrial Organization; Marketing; Risk and Uncertainty;

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    1. David A. Hennessy & Thomas I. Wahl, 1997. "Discount Schedules and Grower Incentives in Grain Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 888-901.
    2. Johnson, D. Demcey & Wilson, William W., 1993. "Wheat Cleaning Decisions At Country Elevators," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December.
    3. Wilson, William W., 1986. "Competition in the International Wheat Market," Agricultural Economics Reports 23326, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Hennessy, David A., 1996. "Economics of Purifying and Blending, The," Staff General Research Papers 5261, Iowa State University, Department of Economics.
    5. Sivaraman, Eswar & Lyford, Conrad P. & Brorsen, B. Wade, 2002. "A General Framework For Grain Blending And Segregation," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 20(2).
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