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A Spatiotemporal Quality Competition Model of the Australian Sugarcane Processing Industry

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  • G. J. Ryland
  • J. W. B. Guise

Abstract

An activity analysis model is developed to determine the optimum period of production at a chain of sugarcane processing plants and the optimal regional transport network flows of cane and raw sugar. Explicit treatment is given to discrete variations in input quality which affect revenue at each plant location in each time period. Optimal solutions to three market configurations open to a multifacility monopolist—spatiotemporal quality competition, spatial quality competition, and pure competition—are obtained. Results suggest that, for given output, industry net revenues can be increased when explicit consideration is given to input quality variations relative to industry net revenues associated with treating inputs as homogeneous.

Suggested Citation

  • G. J. Ryland & J. W. B. Guise, 1975. "A Spatiotemporal Quality Competition Model of the Australian Sugarcane Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 431-438.
    • Handle: RePEc:oup:ajagec:v:57:y:1975:i:3:p:431-438.
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    File URL: http://hdl.handle.net/10.2307/1238405
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    Cited by:

    1. Brown, Colin G. & Drynan, Ross G., 1986. "Plant Location Analysis Using Discrete Stochastic Programming," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(1), pages 1-22, April.
    2. Borrell, Brent & Wong, Gordon, 1986. "Efficiency of transport, milling and handling in the sugar industry: a case study of the Mackay region," Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Archive 316178, Australian Government, Australian Bureau of Agricultural and Resource Economics and Sciences.
    3. Unknown, 1989. "Bulk Handling of Paddy and Rice in Malaysia: an Economic Analysis," Technical Reports 113876, Australian Centre for International Agricultural Research.

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