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Abstract
Agricultural supply chains, especially those from producer to first handler, are
relatively mature institutions. While agricultural economists often observe the
evolution of marketing structures in developing nations, it is a rare opportunity to
research a developing market within North America. The emerging bioenergy
industry—which relies on non-food crops such as straw—provides the potential
to research and potentially impact the development of new supply chains. Here,
we briefly review the literature related to biomass supply chains, pose a transaction
cost approach to studying their development, and then discuss the procurement
strategies of an industry leader: the Iogen Corporation.