About
  PDF
Full Text
(24 K)

Minimizing Costs of Production per Pound: Creating Efficient Input Markets Using the Internet

N. Fulton Breen


 
ABSTRACT

Efficient markets are a function of low transaction costs and readily available information. Typical transaction costs in a commercial environment are the costs of collecting information (e.g. pricing information) and the cost of fulfilling a transaction (e.g. logistics, accounting). With the advent of the Internet, information is now available to anyone. This information, coupled with secure, reliable fulfillment and delivery services on a neutral, open Internet exchange for agricultural inputs, can bring about cost efficiencies of between $.03 and $.06 per pound of cotton to buyers by creating an efficient input market. Cotton growers can now use Internet technology to bring significant, measurable savings to inputs by using the bidding process (grower lists the products he needs and states the price he is willing to pay, then suppliers across the country 'bid' for his business) or purchasing posted product offerings. WWW.XSAg.com provides users national pricing information and transaction capability for inputs on a completely neutral, secure, private and dependable website at no cost to buyers.



Reprinted from Proceedings of the 2000 Beltwide Cotton Conferences pg. 15
©National Cotton Council, Memphis TN

[Main TOC] | [TOC] | [TOC by Section] | [Search] | [Help]
Previous Page [Previous] [Next] Next Page
 
Document last modified Saturday, Jun 17 2000