A static model of economic efficiency in vegetable production in Manitoba : an application of linear programming

Abstract

...The problem investigated in this study may be stated as: how to organize a vegetable production unit in order to achieve the highest possible net income. This optimization must be achieved within a dynamic industry which is characterized by a shortage of qualified labor at moderate wage rates, coupled with difficulties in mechanizing and dispersion of production from the large urban centres of consumption. These specific problems associated with the vegetable industry bear further explanation. Rising property taxes and land values in proximity to urban centres of consumption (especially Winnipeg) have induced many vegetable growers to move their location of production to other areas. This has resulted in new cost structures, compounding the difficulties posed by the need to adjust to a changing industry. Further reorganization is necessitated by the rising cost of labor. Production of vegetable crops requires labor which is relatively high in skill and experience so that the various tasks involved can be handled with preciseness and dispatch. Reliable labor of this caliber, at a price which most vegetable growers feel they can pay, is in short supply. Indications are that casual Indian labor can be obtained at a reasonable rate if adequate temporary living accommodations are provided by the grower. There still remains the question of how the available labor can be most efficiently utilized... Thus, the conditions under which the farm firm must operate are changing. These external factors are reflected within the firm by variation in cost structures, production techniques, and resource supplies available.