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Abstract

Excerpts from the report Introduction: Beef fattening in northern Colorado is rapidly shifting from smaller to larger enterprises. From 1953 to 1963, the percentage of that area's feeder cattle in feedlots of less than 500-head capacity declined sharply--from 60 to 20 percent. Meanwhile, the percentage of the area’s cattle fed in lots of 5, 000-head capacity or larger rose from less than 25 to more than 50 percent. Farmers, specialized beef-feeding businesses, feed companies, meat packers, public officials, and others are concerned over these rapid changes. They want a clearer understanding of the economic forces behind such changes. They need answers to such questions as : Does volume have a significant bearing on cost per head in cattle feeding? If it does, how important are the cost reductions due to feedlot capacity in the competitive structure of the cattle-feeding industry?

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