Doctoral Dissertations

Date of Award

12-1972

Degree Type

Dissertation

Degree Name

Doctor of Philosophy

Major

Agricultural Economics

Major Professor

James G. Snell

Committee Members

Luther Keller, C. L. Cleland, K. E. Phillips

Abstract

The objectives of this study were: (1) to determine the increases in investment incurred by selected plants in complying with the new inspection regulations, and (2) to determine the change in number and size of the livestock slaughter and processing plants in Tennessee since the passage of the Wholesome Meat Act of 1967 and the Tennessee Meat and Poultry Inspection Act. Certain study plants in the state were selected for close analysis of the improvements that they had to make in order to meet the require-ments of the new inspection programs. A combination of in-plant data and economic engineering data were used to determine the increase in cost. Data concerning the size, number, and location of plants in the state were obtained from the Tennessee Department of Agriculture. The kill data were available from both state and federal sources. The changes that took place in the structural variables of plant size, number of plants, size distribution of plants, location of plants, concentration of production in largest plants, and patterns of entry and exit were analyzed to determine what changes did occur in the industry. All plants contacted through the survey made some type of improvement in their plant and/or equipment. The plants selected for closer analysis made changes in their operation and improvements in their plants which were similar to all plants, but naturally some of the improvements made by these plants were unique to the individual plants. Four plants were chosen for closer analysis with the represen-tative A(1) plant spending a total of $98,944.00, the two A(2) plants spending $87,624.32 and $64,476.32, and the representative A(3) plant spending $59,874.60. These expenditures covered a wide range of improvements including building a completely new plant; building or remodeling kill floors, processing rooms, coolers, freezers, or holding pens; purchasing stainless steel tables, rubber cutting boards, paunch trucks; and other similar items. The range of expenditures found in the commercial plants contacted was from $15,000 to well over $1,000,000. The improvements that these four plants made can be considered similar to the changes made by all slaughtering plants in the state. Also, the changes can be considered similar to changes made by the processing plants if the kill floor is excluded. Thus, costs for both slaughter and processing plants were similar. The implementation of the Wholesome Meat Act of 1967 and the Tennessee Meat and Poultry Inspection Act in Tennessee has caused no drastic changes in the structure of the Tennessee Livestock-Meat Industry. Only slight changes have occurred in the structural variables. The number of processing plants increased slightly and the number of slaughter plants decreased slightly. Location of plants in the state became somewhat more concentrated in the metropolitan areas, but this cannot be considered strictly a result of the new laws. This was especially true for those plants which accounted for the major portion of the production. The number of people employed in the industry in the state has increased due to the expansion of some of the larger slaughter plants and the establishment of more processing facilities. Procurement and distribution patterns have undergone little change. Although there may have been a slight decline in the number of slaughter plants, the competition for slaughter animals has not decreased. Therefore, the livestock producers and the marketing sector have not been adversely affected by the new inspection laws. The number of suppliers of carcasses and processed meat has not changed which means that no retailers have been left without a supplier. The movement in and out of the industry during the period which this study covered was not impaired by the Wholesome Meat Act and the Tennessee Meat and Poultry Inspection Act. There was no major exodus of plants. The distribution of slaughter among the slaughter plants has stayed relatively constant since the enactment of the new laws. Slaughter capacity for the industry has not been significantly altered. There has been no move toward specialization in the slaughter of any particular species. Other than a major one-shot increase in the investment expendi-tures to improve the plant and equipment, little change has taken place in the industry. Therefore, it can be said of the meat-packing industry in Tennessee that the operation of the new inspection laws has not altered the structure of the industry to any measurable extent.

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