A PRELIMINARY FEASIBILITY FOR ESTABLISHING A MULTI-SPECIES MEAT PROCESSING PLANT IN SOUTHWESTERN NORTH DAKOTA

Daniel J. Nudell, David G. Kraenzel, Timothy A. Petry, Timothy Faller, Harlan G. Hughes and Erin Brown

No 23293, Agricultural Economics Reports from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: The number of small commodity livestock slaughter plants in the Upper Northern Plains region continues to decline. Significant factors contributing to this decline include: 1) pressure to consolidate, thereby capturing economies of scale; 2) relatively stringent federal inspection specifications, along with; 3) HACCP (Hazardous Analysis Critical Control Points) requirements. At the same time, consumer demand (markets) for specialty, selected, and exotic meats appears to be growing. For example, the recent market successes in Europe evidenced by the North American Bison Cooperative based in New Rockford, North Dakota. Several alternative livestock producer groups have emerged which include lamb, ratite, elk, deer, goat, poultry, rabbit, specialty beef, and organic livestock. These groups have expressed a need for slaughter and processing facilities to meet market demand. The economic question which then becomes foremost to developing a viable business enterprise is: "What is the critical threshold volume (CTV) of product required to succeed in terms of economic profit?" Specialty livestock is relatively new and production volume small in comparison to established commodity livestock such as cattle or hogs. This fact led researchers to consider the preliminary feasibility of a multi-species processing facility as a means of addressing the expressed need.

Keywords: Community/Rural/Urban Development; Agribusiness (search for similar items in EconPapers)
Pages: 98
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaer:23293

DOI: 10.22004/ag.econ.23293

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