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Potential Impacts of Routing Milk to Dairy Processing Plants on the Basis of Assembly Cost and Protein Content

Ford Foundation, New York, NY 10025

J. E. Pratt and A. M. Novakovic

Department of Agricultural Economics, Cornell University, Ithaca, NY 14853

ABSTRACT

Cheese yields are directly related to the amount of protein in raw milk. Multiple goal programming and heuristic vehicle routing techniques are used to evaluate the trade-offs between revenues and costs of hauling from farm to plant resulting from protein-based assignments of milk producers to cheese and fluid processing plants. Increased assembly costs are minor in comparison with the revenue gains from increased cheese yields.