Optimizing tomato distribution to processors lifts profits little

Tomatoes are often hauled long distances in Northern and Central California. Because production areas and processing facilities are not geographically well aligned, processors compete across relatively long distances to procure tomatoes. In this study of the field-to-processor distribution of processing tomatoes, a nonlinear programming model was developed to determine the optimal distribution of tomatoes from the 13 highest-producing counties to the 32 processing plants in the region. Results suggest that excessive interregional haulage of tomatoes occurs, but the additional industry profit from implementing the optimal allocation versus the estimated actual allocation was only 1.9%.