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Economies of Scale in der Produktion versus Diseconomies im Transport: Zum Strukturwandel in der Milchindustrie

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  • Boysen, Ole
  • Schröder, Carsten

Abstract

In this article, we simulate the concentration process within the German dairy sector employing a sector?wide optimization model. As a result, we get cost minimizing structures of the dairy sector for various time horizons depending on varying levels of transportation costs. We show that the model is capable of describing the current trend characterized by a decrease of the number of dairies while average capacity increases and that – ceteris paribus – this trend is likely to continue. In contrast, the trend may weaken or reverse if transportation costs rise in comparison to other types of costs.

Suggested Citation

  • Boysen, Ole & Schröder, Carsten, 2005. "Economies of Scale in der Produktion versus Diseconomies im Transport: Zum Strukturwandel in der Milchindustrie," Discussion Papers 2005/15, Free University Berlin, School of Business & Economics.
    • Handle: RePEc:zbw:fubsbe:200515
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    References listed on IDEAS

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    1. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    2. Fred Glover, 1989. "Tabu Search---Part I," INFORMS Journal on Computing, INFORMS, vol. 1(3), pages 190-206, August.
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    Cited by:

    1. Caetano Luiz Beber & Sebastian Lakner & Ioannis Skevas, 2021. "Organizational forms and technical efficiency of the dairy processing industry in Southern Brazil," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-22, December.

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    More about this item

    Keywords

    Capacitated facility location problem; structural change; transportation;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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