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Least-Cost Milk Assembly And Manufacturing Plant Locations For The Northeastern Dairy Industry

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  • Buccola, Steven T.
  • Conner, M. C.

Abstract

There is some concern that geographic patterns of dairy cooperative membership, and customary relationships among milk assemblers and processors, may inhibit milk marketing efficiency in the Northeast. Raw milk assembly patterns and hard product manufacturing plant locations are here developed which minimize total regional costs of these functions. Solutions are highly sensitive to season, day·of-the-week, and capacity assumptions. Evidence strongly suggests that regional coordination of milk assembly and manufacturing would result in cost savings and in some re-alignment of present milk shipment patterns.

Suggested Citation

  • Buccola, Steven T. & Conner, M. C., 1979. "Least-Cost Milk Assembly And Manufacturing Plant Locations For The Northeastern Dairy Industry," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 8(1), pages 1-7, April.
    • Handle: RePEc:ags:nareaj:159296
    DOI: 10.22004/ag.econ.159296
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    References listed on IDEAS

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    1. Bressler, R.G., 1958. "Pricing Raw Product in Complex Milk Markets," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 10(4), pages 1-18, October.
    2. Strang, Daniel R. & Eiler, Doyle A., 1976. "Impact On Milk Assembly Costs Of Daily Milk Pick-Ups," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-11, April.
    3. Donald W. Kloth & Leo V. Blakley, 1971. "Optimum Dairy Plant Location with Economies of Size and Market-Share Restrictions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 461-466.
    4. Gordon A. King & Samuel H. Logan, 1964. "Optimum Location, Number and Size of Processing Plants with Raw Product and Final Product Shipments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(1), pages 94-108.
    5. Strang, Daniel R. & Eiler, Doyle A., 1976. "Impact On Milk Assembly Costs Of Daily Milk Pick-Ups," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 5(1), pages 1-11, April.
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    Cited by:

    1. Nubern, Christopher A. & Kilmer, Richard L., 1995. "Alternative Fluid Milk Procurement Systems For Florida Dairy Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-15, December.

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