Modeling Product Flow Through a Generic Post-Harvest Distribution System
A spreadsheet-based stochastic model was developed to track fruit numbers and fruit value for 1,000 individual items grown in a farmer's field, sorted at a packinghouse with and without advanced inspection technology, distributed with and without repack, and sold at a retail store. The quantities generated at each step are value per unit volume in the production field and the respective price multipliers and passing fractions at the packinghouse, distribution center, and retail store. Values of these coefficients were set to reflect experience with the onion industry. It was assumed that about 30% (with repackaging) to 40% (without repackaging) of the fruit leaving the farmer's field would reach the consumer. The initial price per unit volume and pricing multipliers were configured to give representative prices at the production field and representative price per unit fruit at steps through the system to the consumer. The pass-through percentage was decreased an extra 10% to 15% with technology and up to 20% with repack, with corresponding increases in subsequent steps to maintain the 25% to 25% total pass-through. Repacking and technology addition in the packinghouse tended to result in increased value at the retail level. Placing technology in the packinghouse did not result in increased value for the packinghouse. Vertical integration that included the packinghouse would be required to make it profitable to add sorting technology that increases quality by removing defective items. Both technology addition and repackaging reduce the total number of fruits reaching the consumer. The model suggests that the notion of early removal of fruits with latent damage to avoid increased distribution costs does not really benefit the consumer for the conditions modeled. Additional considerations such as food security are required for one to expect additional equipment adoption under current scenarios.
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.:
- Jordan, Jeffrey L. & Shewfelt, R.L. & Prussia, Stanley E. & Hurst, W.C., 1985. "Estimating Implicit Marginal Prices Of Quality Characteristics Of Tomatoes," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(02), December.
- Jordan, Jeffery L. & Shewfelt, R. L. & Prussia, S. E. & Hurst, W. C., 1985. "Estimating Implicit Marginal Prices of Quality Characteristics of Tomatoes," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(02), pages 139-146, December.
- Kaufman, Phillip R., 1999. "Food Retailing Consolidation: Implications For Supply Chain Management Practices," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(1), March.
When requesting a correction, please mention this item's handle: RePEc:ags:jlofdr:9086. 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.