A Study of South Dakota\u27s Competitive Position in the Beef Industry with Respect to Deficit Production Areas

South Dakota produces two of the basic inputs – cattle and feed – necessary for producing finished beef. Whether the present level of cattle feeding should be altered in an important consideration for the general economic welfare of the state. The objectives of this study were: (1) to illustrate by means of a theoretical model, the relevant and important factors to be determined and analyze din an interregional competition study; (2) to determine the surplus and deficit areas of beef cattle production, and to point to some of the factors related to demand for beef; (3) to determine the types of rations used in feeding cattle in the deficit areas, and the costs of their ingredients, at 1960 prices, and at ten-year average prices; (4) to determine the transfer costs from South Dakota to the deficit states; and (5) to compare the costs of South Dakota with the costs of deficit regions, in an effort to determine whether cattle feeders in this state can compete with beef producers in these areas. The first hypothesis of this study was accepted: South Dakota is a surplus state in the production of beef; therefore, it must find outside markets for its beef. With qualifications, the second hypothesis was also accepted: South Dakota cattle-feeders can produce beef at costs comparable to those of beef producers in other areas if they ship the beef in dressed form to the consumer areas