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Feasibility of a Tennessee Cull-Cow Processing Facility

David Hughes, Edward Yu, Andrew P. Griffith, Brad Wilson, Dwight Loveday, Harry Crissy and Neal Schrick

No 303056, Extension Reports from University of Tennessee, Department of Agricultural and Resource Economics

Abstract: Beef cattle and dairy farmers seek local markets for their culled livestock. Livestock processing facilities offer such opportunities and also assist rural communities in need of economic growth. Provided here is an analysis regarding the feasibility of a cull cattle processing facility in one of the 15 economically distressed counties in Tennessee. Initially examined is the cost of obtaining cows for processing at the facility, followed by a facility location analysis. A discussion of estimates regarding facility construction, facility equipment and facility labor needs and costs is followed by a discussion regarding facility output and revenue. Financial analysis regarding total cost and profitability including sensitivity analysis with respect to key variables is provided. Finally, overall feasibility of the facility is discussed and summary and conclusions are drawn.

Keywords: Agribusiness; Community/Rural/Urban Development; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 17
Date: 2020-05-04
New Economics Papers: this item is included in nep-agr, nep-gen and nep-ore
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DOI: 10.22004/ag.econ.303056

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