Regional location of cattle feeding — A spatial equilibrium analysis
AuthorsG. A. King
L. F. Schrader
Authors AffiliationsG. A. King was Associate Professor of Agricultural Economics, and Associate Economist in the Agricultural Experiment Station and on the Giannini Foundation, Davis; L. F. Schrader was formerly Assistant Specialist in the Agricultural Experiment Station, and is now Research Economist, Lever Brothers Company, New York.
Hilgardia 34(10):331-416. DOI:10.3733/hilg.v34n10p331. July 1963.
This study focuses on factors affecting the regional location of cattle feeding. Briefly stated, these factors include the regional demand for beef, transfer costs for carcass beef and for the intermediate products of feeds and feeder cattle, feed conversion efficiency by region, and regional supplies of the intermediate products of concentrate feed, hay, and feeder cattle. The study is a partial equilibrium approach to the location of feedlots, taking as given the location of production of other livestock products.
A competitive equilibrium model was developed for analyzing the location of cattle feeding for a 20-region breakdown of the United States for the 1957-58 feeding year. A linear programming technique was utilized to quantify the model. The solution generated provides the spatial distribution of cattle feeding by region, the pattern of interregional shipments of intermediate products and of carcass beef, a set of equilibrium prices for beef, and imputed prices for intermediate products by region.
Four models were quantified to test alternative model specifications as to feedlot nonfeed costs, regional feed conversion efficiency, and regional demand for beef. Results indicate no simple rules for location of cattle feeding, but rather stress the importance of considering the interrelationships among the major variables such as the regional demand for beef, regional intermediate product supply, regional feed conversion efficiency, and transfer costs for the intermediate products and for carcass beef.
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