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Supply of Dairy Products in Developing Countries

Author

Listed:
  • Hanjoon M. Jung

    (Institute of Economics, Academia Sinica)

  • Abid A Burki

    (The Department of Economics, Lahore University of Management Sciences)

  • Mushtaq A Khan

    (The Department of Economics, Lahore University of Management Sciences)

Abstract

Dairy products in developing countries are characterized by two properties, namely, perishability and short-periodic production. These properties are so unique that conventional studies in agricultural economics or in industrial organization might not explain the dairy product supply well. Hence, to understand this dairy product supply, we model it based on these two properties. We find that these properties invite middlemen who can efficiently deliver the products, and give rise to economies of scale in transportation and accessibility advantage in the dairy product supply. The economies of scale in transportation arise because greater production reduces average delivery costs per unit. The accessibility advantage occurs because lowering delivery costs significantly reduces total transportation costs in the long term.

Suggested Citation

  • Hanjoon M. Jung & Abid A Burki & Mushtaq A Khan, 2012. "Supply of Dairy Products in Developing Countries," Economics Bulletin, AccessEcon, vol. 32(4), pages 3213-3223.
    • Handle: RePEc:ebl:ecbull:eb-11-00828
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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I4-P308.pdf
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    References listed on IDEAS

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    Cited by:

    1. Mohamed El Abdellaoui & Gilles Pache, 2019. "Effects of disruptive events within the supply chain on perceived logistics performance," Economics Bulletin, AccessEcon, vol. 39(1), pages 41-54.

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    More about this item

    Keywords

    Accessibility Advantage; Dairy Products; Dairy Product Supply; Economies of Scale; Perishability; Short-periodic Production;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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