Modeling and optimizing the beef supply chain in the Northeastern U.S

Houtian Ge, Miguel Gomez and Christian Peters

Agricultural Economics, 2022, vol. 53, issue 5, 702-718

Abstract: Seasonality of beef cattle supplies raises supply coordination challenges. In the Northeastern U.S., for example, producers often argue that lack of access to slaughter and processing facilities limits expansion potential, whereas slaughterers and processors posit that there is not enough supply to keep plants fully utilized. We develop an optimization model to determine whether the existing slaughter and processing infrastructure in the region meets producers’ demand for these services. The model allows us to identify the minimum‐cost solution to efficiently utilize those facilities and to assess relative costs associated with product handling. The analysis explores the spatial structure of the Northeast beef cattle assembly, slaughter, processing, and distribution system that might result if these supply chain activities were regionally coordinated. We find that a consolidated network that allows for coordination of the regional beef supply chain system can address possible bottlenecks of plant capacity. This study sheds light on ways to establish and improve regional coordination mechanisms to enhance efficiency in regional food systems.

Date: 2022
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