Structure of the U.S. Wheat Supply Chain

This paper is organized around three stages or links in the wheat value chain: elevators, milling, and baking. Each of these links represents an important economic activity within the supply chain. Although heavily intertwined, each link competes in a unique economic environment. The discussion for each link centers on structure and competitiveness of industries in each of the links. It is concluded that competitive forces are changing the structure of industries that encompass the wheat supply chain. Elevators are increasingly using multiple-railcar shipments, increasing their emphasis on volume and throughput. Flour mills are shifting locations, increasing plant size, investing in technology, and developing strategic alliances with customers. In transportation, mergers among Class I railroad carriers have contributed to further consolidation. Price incentives continue for multiple-railcar movements over long distances, and innovations in forward-pricing mechanisms continue to evolve. Consolidation and acquisition of the largest bakeries, changing procurement practices, increasing deployment of new technologies, increasing plant size, increased research and product development efforts, and improving efficiency of distribution practices are all forces taking shape in the bakery industry.

• Record URL:
  https://www.ugpti.org/resources/reports/details.php?id=134
• Authors:
  • Barber, Jason
  • Titus, Matthew J
• Publication Date: 1995-12

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 18p
• Serial:
  • UGPTI Staff Paper
  • Issue Number: 131
  • Publisher: Upper Great Plains Transportation Institute

Subject/Index Terms

• TRT Terms: Competition; Economic analysis; Grain elevators; Industry structure; Mills; Railroad transportation; Supply chain management; Wheat
• Geographic Terms: United States
• Subject Areas: Economics; Freight Transportation; Railroads;

Filing Info

• Accession Number: 01705817
• Record Type: Publication
• Files: TRIS
• Created Date: May 23 2019 4:29PM