Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

95

Issue

17

Publisher

Utah State University Department of Economics

Publication Date

1995

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

22

Abstract

Potential animal numbers range from nearly 170,000 head to almost 370,000 head. The construction costs for a 400-head per day slaughter plant would be nearly $10,000,000 in 1995 dollars. The largest two cost items are the building (and associated mechanical facilities) and equipment. Assuming one shift per day operating at 90% capacity, the total (fixed and variable) cost per pound of meat processed would be approximately $1.32 per pound. The revenue associated with such a plant is estimated to be $1.35 per pound, leaving a net return of $0.03 per pound of processed meat, which would return approximately $1,000,000 per year at this operating capacity. Profitability is sensitive to the cost of the animals live, the ability to keep the plant operating at 90% capacity or better, and the price of processed meat.

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