The agroindustry: a neglected aspect of the location theory of manufacturing

A systematic approach model integrating some inputs from von Thunen's production location proposition was used to describe the location behavior of an agroindustrial firm. The result showed that the location behavior of an agroindustrial firm differs very much from its non-agroindustrial counterparts. Agroindustrial firms, whether they are price-takers or monopolists, do not minimize transportation costs when the production function is linearly homogenous and the cost of shipping products is high.