Cost-of-Service vs. Uniform Pricing in a Cooperative Feed Manufacturing and Distribution System

A 40-region nonlinear programming model of a cooperative livestock feed production and distribution system, including possibilities for on-farm processing, is used to compare system organization and performance given two pricing strategies. Use of one price regardless of location results I higher average costs to patrons than pricing products to reflect cost to each region. Transportation costs are increased using uniform pricing. Cost effects are small and may be offset by other benefits of uniform pricing.


Subject(s):
Issue Date:
1987
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/46201
PURL Identifier:
http://purl.umn.edu/46201
Published in:
Journal of Agricultural Cooperation, 02
Page range:
30-39
Total Pages:
10




 Record created 2017-04-01, last modified 2020-10-28

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