IDEAS home Printed from https://ideas.repec.org/p/ags/waeava/36364.html
   My bibliography  Save this paper

Procurement Strategies: Impacts Of Quality Risks In Hard Wheat

Author

Listed:
  • Wilson, William W.
  • Dahl, Bruce L.
  • Johnson, D. Demcey

Abstract

Analytical models were developed in this paper to evaluate cost/risk tradeoffs of three alternative procurement strategies in the case of hard red spring (HRS) wheat. Results indicate a naive strategy has the lowest expected cost, but a high probability of not conforming to end-use requirements. Two alternative specifications for the constant share strategy result in higher probabilities of meeting requirements, but at higher costs. The opportunistic strategy results in a higher probability of meeting requirements than either of the other two alternative strategies at a comparable cost.

Suggested Citation

  • Wilson, William W. & Dahl, Bruce L. & Johnson, D. Demcey, 2000. "Procurement Strategies: Impacts Of Quality Risks In Hard Wheat," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36364, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeava:36364
    DOI: 10.22004/ag.econ.36364
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/36364/files/sp00wi01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.36364?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. William W. Wilson & Bruce L. Dahl, 1999. "Quality Uncertainty in International Grain Markets: Analytical and Competitive Issues," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 209-224.
    2. Bruce L. Dahl & William W. Wilson & Wesley W. Wilson, 1999. "Factors Affecting Spring Wheat Variety Choices: Comparisons between Canada and the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(3), pages 305-320, November.
    3. Wilson, William W., 1986. "Competition in the International Wheat Market," Agricultural Economics Reports 23326, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Dahl, Bruce L. & Wilson, William W., 1998. "Consistency Of Quality Characteristics In Hard Red Spring Wheats; Summary," Agricultural Economics Reports 23305, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Jill E. Hobbs & Linda M. Young, 1999. "Increasing Vertical Linkages in Agrifood Supply Chains: A Conceptual Model and Some Preliminary Evidence," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(4), pages 478-478, December.
    6. Bruno Larue & Harvey E. Lapan, 1992. "Market Structure, Quality and World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(2), pages 311-328, July.
    7. Alan Barkema & Michael L. Cook, 1993. "The changing U.S. pork industry: a dilemma for public policy," Economic Review, Federal Reserve Bank of Kansas City, vol. 78(Q II), pages 49-65.
    8. Larue, Bruno & Lapan, Harvey E., 1992. "Market Structure and the World Wheat Market," Staff General Research Papers Archive 10807, Iowa State University, Department of Economics.
    9. Dahl, Bruce L. & Wilson, William W., 1998. "Consistency Of Quality Characteristics In Hard Red Spring Wheats," Agricultural Economics Reports 23455, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gallardo, Rosa Karina & Holcomb, Rodney B., 2006. "Increasing U.S. Hard Red Winter Wheat Competitiveness in Latin American Markets," 2006 Annual meeting, July 23-26, Long Beach, CA 21187, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dahl, Bruce L. & Wilson, William W., 1999. "Effect Of Hard Red Spring Wheat Consistency On Milling Value," Agricultural Economics Reports 23378, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Diersen, Matthew A. & Wilson, William W. & Johnson, D. Demcey, 1995. "Quality Uncertainty and Grain Merchandising Risk: Vomitoxin in Spring Wheat," Agricultural Economics Reports 23365, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Wilson, William W. & Dahl, Bruce L., 2008. "Procurement Strategies to Improve Quality Consistency in Wheat Shipments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(1), pages 1-17, April.
    4. Carl Gaigné & Bruno Larue, 2016. "Public quality standards and the food industry’s structure in a global economy," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(2), pages 141-148, September.
    5. Lin, William & Leath, Mack, 1993. "Costs and Benefits of Cleaning U.S. Wheat: Overview and Implications," Agricultural Economic Reports 308280, United States Department of Agriculture, Economic Research Service.
    6. Pautsch, Gregory R. & Abdelrahman, Ali H., 1998. "Effects of Egyptian economic reforms: the horticultural sector," Food Policy, Elsevier, vol. 23(2), pages 199-210, April.
    7. Koo, Won W. & Nganje, William E. & Johnson, D. Demcey & Park, Joon J. & Taylor, Richard D., 1999. "Economic Analysis Of The Proposed North Dakota Wheat Pool; Summary," Agricultural Economics Reports 23453, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. Larue, Bruno & Gervais, Jean-Philippe, 1996. "The Impact Of The Canada-U.S. Hog/Pork Trade Dispute On The Composition Of U.S. Pork Imports," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), pages 1-13, October.
    9. Rachael Goodhue & Leo Simon, 2016. "Agricultural contracts, adverse selection, and multiple inputs," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-33, December.
    10. Timothy Matisziw & James Hipple, 2001. "Spatial Clustering and State/County Legislation: The Case of Hog Production in Missouri," Regional Studies, Taylor & Francis Journals, vol. 35(8), pages 719-730.
    11. Goodhue, Rachael E., 1997. "Production Control and Production Contracts: Why Do Integrators Control Inputs?," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35908, Western Agricultural Economics Association.
    12. Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    13. Dahl, Bruce L. & Wilson, William W., 1996. "Grades/Classes Of Hard Wheats Exported From North America: Analysis Of Demand And Trends," Agricultural Economics Reports 23379, North Dakota State University, Department of Agribusiness and Applied Economics.
    14. Roberts, Shane & Brooks, Kathleen & Nogueira, Lia & Walters, Cory G., 2022. "The role of quality characteristics in pricing hard red winter wheat," Food Policy, Elsevier, vol. 108(C).
    15. Mao, Hui & Zhou, Li & Ifft, Jennifer & Ying, RuiYao, 2019. "Risk preferences, production contracts and technology adoption by broiler farmers in China," China Economic Review, Elsevier, vol. 54(C), pages 147-159.
    16. Mao, Hui & Zhou, Li & Ifft, Jennifer, 2017. "Risk Preferences, Contracts and Technology Adoption by Broiler Farmers in China," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 257248, Agricultural and Applied Economics Association.
    17. Rui Fragoso, 2013. "Planning Marketing Channels: Case of the Olive Oil Agribusiness in Portugal," CEFAGE-UE Working Papers 2013_07, University of Evora, CEFAGE-UE (Portugal).
    18. Gary L. Benjamin, 1997. "Industrialization in hog production: implications for Midwest agriculture," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 21(Jan), pages 2-13.
    19. MacMillan, James A. & Sabourin, Sylvio & Chorney, B., 2000. "Manitoba's Seed Industry: Value Added Economic Impacts," Research Bulletins 124306, University of Manitoba, Department of Agribusiness and Agricultural Economics.
    20. Johnson, D. Demcey & Lin, William W., 2005. "The Economics of Testing for Biotech Grain: Application to StarLink Corn," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(2), pages 1-17, August.

    More about this item

    Keywords

    Crop Production/Industries;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:waeava:36364. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.