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Water-Rail Rate Competition and the Competitive Position of the Northeastern Poultry Industry

Published online by Cambridge University Press:  10 May 2017

Walter Spilka Jr. ,
David Kenyon  and
Leonard Shabman
Walter Spilka Jr.
Affiliation:
Dept. of Agricultural Economics, Virginia Polytechnic Institute and State University
David Kenyon
Affiliation:
Dept. of Agricultural Economics, Virginia Polytechnic Institute and State University
Leonard Shabman
Affiliation:
Dept. of Agricultural Economics, Virginia Polytechnic Institute and State University
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Abstract

Differential grain transportation rates between the Northeast and South have been identified as a possible source of comparative disadvantage for Northeastern broiler producers. Low cost barge transportation into the South provides competition for railroads resulting in generally low transportation rates in the South. Barge transportation is low cost in part because the Federal improvements of waterways have resulted in a toll-free waterway system. Solutions for a transportation model were found with and without the subsidy. The results indicate that subsidy removal is unlikely to affect interregional broiler production and consumption.

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Type
Articles
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Journal of the Northeastern Agricultural Economics Council , Volume 7 , Issue 1 , April 1978 , pp. 13 - 17
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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References

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