Cost Structures and Management Strategies for Beef Slaughter Plants

The cattle industry is undergoing dynamic changes that have indicated a need for new research. Research information is needed by decision-makers in all areas of the cattle industry from the cattle feeder to the consumer of meat. This study is a part of the North Central Livestock Research Committee effort under NCM-36 which has undertaken the task to provide the modern cattle industry with the needed research. This study as a contributing effort to the overall NCM-36 regional effort was limited to the study of the procurement stage and the in-plant operations stage of specialized on-the-rail beef slaughtering plants in the Upper Missouri Valley area. The objectives of the study were (1) to determine the basic cost structure of the procurement and in-plant operations stage with emphasis on short, medium-short, and long-run adjustments and (2) to relate the cost structure of these stages to management decisions with reference to a single plant and to the whole slaughtering industry. Advisor: James G. Kendric