Transportation costs and cattle feeding in Arizona

Published in 1971

Any industrial operation is faced with the problem of minimizing transportation costs when determining plant location. Raw materials must be moved in and finished products transported to final markets. These costs must be weighed against the production advantages or disadvantages provided by nature in specific locations. Cattle feeders must make decisions of this nature. Feeder cattle are brought into Arizona from substantial distances while fat cattle and carcasses are exported a shorter but still significant distance. In order to be competitive, combined costs of production and transportation for Arizona feeders must be balanced against similar operations in alternative locations. This study attempts to explain this movement and establish a cost figure. To accomplish this goal a brief description of the cattle industry in Arizona has been made. Also, economic and institutional forces as they relate to inter and intrastate transportation are discussed to provide some insights into the problems associated with the movement of livestock, carcasses and feeds. Relatively high costs for transportation are incurred by Arizona feedlot operators as a result of the distances from feeder calf suppliers and from consumer markets for beef. In order to be competitive at the consumer level some factor must offset these costs. This factor must be found in the feeding process whereby the conversion of feed into beef has a relatively high degree of efficiency.

AZU_TD_BOX259_E9791_1971_22.pdf (1.99 MB)

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