Masters Theses

Roy Burgess

Date of Award

12-1962

Degree Type

Thesis

Degree Name

Master of Science

Major

Agricultural Economics

Major Professor

Irving Dubov

Committee Members

Stanton P. Parry, Cecil E. Fuller

Abstract

The objective of this study was to analyze the cost structure for whole-hog sausage processing plants with varying sizes of physical facilities and at designated volume of output for each plant. Costs were estimated for the processing of one hundred pounds of whole-hog sausage from live animals, and to cover outlays for building construction, equipment, labor, supplies, and utilities.

The specific objectives were:

1. To estimate the cost of real estate, building construction and equipment for five model whole-hog sausage processing plants of varying sizes.

2. To estimate the cost for administrative, clerical and common labor personnel and for utilities required to operate the model plants at peak capacity.

3. To determine the total cost of transforming one hundred pounds of live animal into whole-hog sausage in each of the five plants at varying rates of operation.

The study was limited to an analysis of cost structures for plants that process only whole-hog sausage and no consideration was given to cost of processing other pork products. By-products are considered only to the extent that they are placed in barrels within the different processing departments and hand trucked to a waste storage department. All wastes were removed from the building by companies that further process the animal by-products. The costs of waste removal from each model plant were assumed to be borne by the companies that removed the waste material.

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