ESTIMATED IMPACT OF NON-PRICE COORDINATION OF FED CATTLE PURCHASES ON MEAT PACKER PROCESSING COSTS

Stochastic simulation of daily slaughter level was used in conjunction with an estimated packing plant cost curve to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to $5 per head may be possible. Savings result from ensuring a more stable processing volume that is near the plant's cost-minimizing level of production.


Issue Date:
2003
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/14668
Published in:
Journal of Agribusiness, Volume 21, Number 2
Page range:
183-196
Total Pages:
14




 Record created 2017-04-01, last modified 2017-08-23

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