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Florida Dairy Marketing Cooperatives' Transfer Cost Associated With Non-Uniform Delivery Schedules

Author

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  • Glenn, Sophia J.
  • Kilmer, Richard L.
  • Stevens, Thomas J., III

Abstract

The economic basis for alternative delivery schedules between Florida Dairy Marketing Cooperatives (FDMCs) and fluid milk processors are analyzed, and the costs and benefits of improved coordination between these two market stages are highlighted. The additional costs incurred by FDMCs were they to switch from a uniform delivery schedule to various non-uniform delivery schedules are discussed. The seven-day uniform delivery schedule with the $0.25 discount scheme on total volume decreases FDMCs' net revenues by $0.1433 per hundredweight (cwt), compared to a five-day delivery schedule with no price discounts.

Suggested Citation

  • Glenn, Sophia J. & Kilmer, Richard L. & Stevens, Thomas J., III, 2000. "Florida Dairy Marketing Cooperatives' Transfer Cost Associated With Non-Uniform Delivery Schedules," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(2), pages 1-7, July.
    • Handle: RePEc:ags:jlofdr:27753
    DOI: 10.22004/ag.econ.27753
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    References listed on IDEAS

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    1. Kinsey, Jean D., 1998. "Supermarket Trends And Changes In Retail Food Delivery," Agricultural Outlook Forum 1998 33217, United States Department of Agriculture, Agricultural Outlook Forum.
    2. Thomas L. Sporleder, 1992. "Managerial Economics of Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1226-1231.
    3. Blair, Roger D. & Kaserman, David L., 1983. "Law and Economics of Vertical Integration and Control," Elsevier Monographs, Elsevier, edition 1, number 9780121034801.
    4. Jill E. Hobbs, 1997. "Measuring the Importance of Transaction Costs in Cattle Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1083-1095.
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