Economies of Scale in Livestock Production

Abstract

NEW technology, changing relationships of resources, and shifts in population centers are causing many changes in livestock production in the United States. Livestock producers and processors are much concerned relative to the future of particular livestock enterprises in the various regions of the country. The development of large scale cattle feeding enterprises in the Southwest and the West Coast and the resulting competitive position of the corn belt feeder has been the topic of discussion of many meetings of producers, feeders, and others concerned. The milk cow pool idea, leasing of sows and cows, the confinement hog production systems, contract feeding, the feed bank idea, mechanization of feed lots, bulk feed handling, large scale broiler and turkey enterprises, and the increase in beef cow herds in the Middle West and Southeast have been justified as the coming trend in the livestock production by many persons for many reasons. Nearly all of these justifications are based on two general considerations: one, that a particular area has an advantage either in costs or markets over another; or two, the large scale enterprises have a cost advantage and resulting higher profits or a combination of the two.