Economic analysis of the transportation system for the wheat seed industry in Punjab, Pakistan



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Texas Tech University


Currently in Punjab, Pakistan, seed firms are located in two geographic divisions, Bahawal Pur and Multan. These locations are feasible for the distribution of cotton seed but are not adequate for wheat seed distribution. Due to the large consumption of wheat and the government objective of national food security, the future of the wheat seed industry is bright in Pakistan, especially in Punjab province. There is a need for the design and implementation of an efficient and least-cost transportation pattern for wheat seed procurement and distribution. This study was based on the assumption that the seed distribution system would supply eight and 35 percent of total wheat seed requirements for Punjab. The eight percent level represents current distribution of wheat seed, while 35 percent is assumed to be the total seed demand. The 35 percent proportion was selected because farmers in developed countries plant approximately 30 to 35 percent of the wheat acreage with certified seed. The research focuses on the problem of procurement and distribution of wheat seed, since wheat is cultivated throughout the Punjab.

The objective of this study was to determine the least-cost transportation system for the procurement and distribution of wheat seed in Punjab, Pakistan. This study developed a seed transportation model for the procurement and distribution, using three and seven processing plants.