Spatial Procurement of Farm Products and the Supply of Processed Foods: Application to the Tomato Processing Industry

Stephen Hamilton (), Scott Kjorlien (), Ethan Ligon and Aric Shafran ()
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Stephen Hamilton: California Polytechnic State University
Scott Kjorlien: University of California
Aric Shafran: California Polytechnic State University

Review of Industrial Organization, 2024, vol. 64, issue 1, No 2, 33 pages

Abstract: Abstract Increased transportation and logistical costs in agricultural markets have affected the spatial allocation of production in the agricultural and food sectors of the economy. We develop a spatial model of farm product procurement by a food processor, which is designed to capture the effects of supply-chain disruptions on the spatial procurement of farm products in the processed food sector. We use detailed data on production and procurement from a large California tomato processor to estimate the key parameters of the model, which allow us to calculate the price elasticity of supply for California tomato paste production and describe how changes in energy prices and transportation costs for primary agricultural products affect the supply of processed food.

Keywords: Spatial procurement; Food processing; Agricultural supply; Processing tomatoes (search for similar items in EconPapers)
JEL-codes: L11 L66 L90 Q11 R41 (search for similar items in EconPapers)
Date: 2024
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Working Paper: Spatial Procurement of Farm Products and the Supply of Processed Foods: Application to the Tomato Processing Industry (2024)
Working Paper: Spatial Procurement of Farm products and the Supply of Processed Foods: Application to the Tomato Processing Industry (2023)
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DOI: 10.1007/s11151-023-09939-5

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