Transportation Costs of Selected Movements for Sunflower Seed and Oil

Other things being equal, economic theory suggests that an industry will locate its plants near the source of raw materials if the manufacturing process results in weight loss. Plants will tend to locate near consumption points if the manufacturing process results in weight gain. In the case of the sunflower crushing industry, one would assume that plants would be located in North Dakota for at least two reasons. First, over two-thirds of the annual sunflower crop is produced in North Dakota, and second, the crushing process results in considerable weight loss since the seed yields about 40 percent crude oil. Besides the "weight loss" theorem other factors determine where sunflower crushing plants will be located. Variables that also affect the profitability of crushing plants located in North Dakota include sunflower oil/seed and meal/seed price differentials and transportation rate differentials.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Tables;
  • Pagination: 6p

Subject/Index Terms

Filing Info

  • Accession Number: 01834889
  • Record Type: Publication
  • Report/Paper Numbers: UGPTI Staff Paper No. 46, SP-46
  • Files: TRIS
  • Created Date: Jan 30 2022 4:36PM