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Logistical Costs And Risks Of Marketing Genetically Modified Wheat

Author

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  • Schlecht, Shannon M.
  • Wilson, William W.
  • Dahl, Bruce L.

Abstract

Genetically modified (GM) grains have increased in importance. Moving biotech grains from producers to processors is a challenge for the grain handling system that could involve increased segregations. The objective of this research is to determine how testing strategies affect the logistical costs of a grain pipeline when GM wheat is present. A logistical model was developed and simulated to analyze impacts of uncertainty in demand, receipts, test accuracy, rail deliveries, and transit time. Sensitivities were conducted on certain variables to determine their effects on logistical costs. Analysis revealed that logistical costs are impacted by the number of quality categories and uncertainties in the system. Adding GM grains increased costs due to testing requirements and increased segregation demands as the number of wheat categories rises.

Suggested Citation

  • Schlecht, Shannon M. & Wilson, William W. & Dahl, Bruce L., 2004. "Logistical Costs And Risks Of Marketing Genetically Modified Wheat," Agribusiness & Applied Economics Report 23581, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaae:23581
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    File URL: http://purl.umn.edu/23581
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    References listed on IDEAS

    as
    1. Caves, Richard E. & Pugel, Thomas A., 1982. "New Evidence on Competition in the Grain Trade," Food Research Institute Studies, Stanford University, Food Research Institute, issue 03.
    2. William W. Wilson & Bruce L. Dahl, 2000. "Logistical Strategies and Risks in Canadian Grain Marketing," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(2), pages 141-160, July.
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