Economies of Size for Specialized Beef Feedlots in Colorado

Elmer C. Hunter and J. Patrick Madden

No 307303, Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service

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?

Keywords: Livestock Production/Industries; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 53
Date: 1966-05
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerser:307303

DOI: 10.22004/ag.econ.307303

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