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A Preliminary Feasibility For Establishing A Multi-Species Meat Processing Plant In Southwestern North Dakota

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

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.

Suggested Citation

  • Nudell, Daniel J. & Kraenzel, David G. & Petry, Timothy A. & Faller, Timothy & Hughes, Harlan G. & Brown, Erin, 1999. "A Preliminary Feasibility For Establishing A Multi-Species Meat Processing Plant In Southwestern North Dakota," Agricultural Economics Reports 23293, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaer:23293
    DOI: 10.22004/ag.econ.23293
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    References listed on IDEAS

    as
    1. Purcell, Wayne D., 1989. "Analysis of Demand for Beef, Pork, Lamb and Broilers: Implications for the Future," Staff Papers 232388, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    2. Kazmierczak, Tamra Kirkpatrick & Bell, James B., 1992. "Niche Marketing Opportunities Through Lamb Cooperatives," Research Reports 313035, United States Department of Agriculture, Rural Development.
    3. Staroba, Arlyn R. & Bedker, Gary M. & Dunn, Edward V., 1977. "Costs and Returns for Small Livestock Slaughter Plant in North Dakota," Agricultural Economics Reports 23129, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. repec:ags:vtaesp:232459 is not listed on IDEAS
    5. Purcell, Wayne D. & Reeves, Jeffrey & Preston, Warren, 1991. "Economics of Past, Current and Pending Change in the U.S. Sheep Industry with an Emphasis on Supply Response," Staff Papers 232403, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    6. Purcell, Wayne D, 1993. "Consumer Survey: Lamb Buying Behavior and Related Merchendising Aids," Staff Papers 232510, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    Full references (including those not matched with items on IDEAS)

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