Decentralizing the distribution of fresh agricultural produce

Abstract

The current system for distributing fresh fruits and vegetables from farmers to consumers in California is highly centralized: most produce travels through either Los Angeles or the San Francisco Bay area. This article describes the flow of important items of fresh produce from California producers to California consumers, and compares more decentralized patterns of distribution with the current, centralized system. A linear programming model is used to derive a set of commodity flows that collectively minimize the cost of transportation subject to available supply and demand. The model is run for 10 crops, 12 months, and low and high estimates of demand, for each of the following 3 scenarios: Centralized (most like the present, with all produce moving through either the Los Angeles or San Francisco areas), Decentralized (direct movement from producing country to consuming country), and Intermediate (with 6 distribution cities). The overall cost of the Centralized Scenario is consistent with revenue figures from the trucking industry, confirming the Centralized Scenario as a representation of current conditions. The average trip in the Decentralized Scenario is 150 miles, 25% shorter than the average trip in the Centralized Scenario, suggesting that a more decentralized distribution system could generate large savings in transportation costs and fuel usage. Savings in the Intermediate Scenario, which represents a less radical restructuring of the system, are about half those of the Decentralized Scenario.