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The impact of protein increments on blending revenues in the Canadian wheat industry

Konstantinos Giannakas (), Richard Gray and Nathalie Lavoie

International Advances in Economic Research, 1999, vol. 5, issue 1, 136 pages

Abstract: Since 1994, progressively more protein grade increments have been added to existing standards for Canadian Western Red Spring (CWRS) wheat. This paper simulates the impact of additional protein increments on the farm value of grain and on revenues from optimal blending by using a linear programming model that maximizes blending revenues, given the protein distribution of No. 1 CWRS wheat for 1990–91 to 1992–93. Both analytical and empirical results show that the outcome depends on the pricing schedule, the protein distribution, and the placement of the new protein grade. Copyright International Atlantic Economic Society 1999

Date: 1999
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DOI: 10.1007/BF02295037

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