Effects of Split‐Demand and Slaughter‐Capacity Assumptionson Optimal Locations of Cattle Feeding

Abstract

Many studies have concentrated on the optimal location of cattle feeding. Two major limitations of such studies have been (1) reliance on a single demand function for beef and (2) failure to consider existing slaughter capacities. By utilizing separated or split‐demand functions for beef and explicitly accounting for present regional slaughter capacity, quite different patterns of beef feeding emerge. In comparison with actual feedlot locations, the models used showed considerable improvement over most previous models. More importantly, results compare favorably with recent trends in the location of cattle feeding.

Interregional and Interseasonal Competition in the U. S. Beef Industry: An Application of Reactive Programming

“…8 In this context, spatial analysis of the cattle feeding industry made by Langemeier and Finley needs to be mentioned[10]. They considered simultaneously slaughter capacity and demand functions for fed and nonfed cattle.…”

The impact of separating fed from nonfed beef in an econometric simulation

“…Langemier and Finley (23) viewed all previous studies that investi gated the optimal location of cattle feeding as having two major limita tions. One of the limitations was the reliance on a single demand func tion for beef.…”

“…Davis (10) in the study designed to gain mors information on the effect cf systems of feedings on characteristics of beef steers, reported that there is a high degree of correlation between the type of feed, the feeding systems, and the carcass characteristics of beef cuts, i.e.. carcass grade, marbling score, fat cover, and tenderness. Economists, such as Houck (17), Crom (7), Langemier and Finley (23), and Langemier and Thompson (24) have also noticed the unrealistic consequence of aggregating different beef qualities under one item. They have also noticed that dif ferent sequential order chains are involved in the production and market ing of the different beef quality items.…”

The impact of separating fed from nonfed beef in an econometric simulation

“…Davis (10) in the study designed to gain mors information on the effect cf systems of feedings on characteristics of beef steers, reported that there is a high degree of correlation between the type of feed, the feeding systems, and the carcass characteristics of beef cuts, i.e.. carcass grade, marbling score, fat cover, and tenderness. Economists, such as Houck (17), Crom (7), Langemier and Finley (23), and Langemier and Thompson (24) According to Fox (13), several factors caused the existing econometric forecasting models to fall short in providing adequate forecast for 1972-1973 but foreign trade was critical.…”