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Feasibility of a Tennessee Cull-Cow Processing Facility

Author

Listed:
  • Hughes, David W.
  • Yu, Edward
  • Griffith, Andrew P.
  • Wilson, Brad
  • Loveday, Dwight
  • Crissy, Harry
  • Schrick, Neal

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.

Suggested Citation

  • Hughes, David W. & Yu, Edward & Griffith, Andrew P. & Wilson, Brad & Loveday, Dwight & Crissy, Harry & Schrick, Neal, 2020. "Feasibility of a Tennessee Cull-Cow Processing Facility," Extension Reports 303056, University of Tennessee, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:utaeer:303056
    DOI: 10.22004/ag.econ.303056
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    Cited by:

    1. Boyer, Chris & Martinez, Charley & Hughes, David W., 2020. "National Beef Cattle Slaughter Marketing Margins," Extension Reports 305264, University of Tennessee, Department of Agricultural and Resource Economics.
    2. Hughes, David W. & Kimbro, Creig, 2021. "Mapping the Agricultural Assets of Grundy County Tennessee," Extension Reports 309840, University of Tennessee, Department of Agricultural and Resource Economics.

    More about this item

    Keywords

    Agribusiness; Community/Rural/Urban Development; Livestock Production/Industries;
    All these keywords.

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