An economic study of the domestic lamb marketing sector--an interregional analysis

Abstract

Texas is the largest sheep and lamb producing state in the United States. More important, sheep and lamb production is a major livelihood of livestock producers in the Edwards Plateau region. In this region of Texas, agricultural activity is limited, generally, to livestock operations and sheep and lambs are best fitted to utilize the grasses and weeds predominant to the region. Consequently, a thriving sheep and lamb industry is critical to at least one area of the state. With the recent trends toward declining numbers of sheep in the state, together with a reduced demand for lamb nationally, it was essential that a sound analysis be made to estimate what the future holds for the sheep and lamb industry of Texas. The major objective of this study was to determine the relative competitive position for feeding and/or slaughter of lambs in Texas as opposed to other states and/or regions of the United States. Special attention was given to determining the feasibility of expanding the lamb feeding and slaughter activities in Texas, and to estimating the potential impact of increased transportation costs on Texas lamb shipment patterns. A multi-dimensional transshipment model was used for the analysis of this study. The model simultaneously minimized the cost of transporting lambs, feeding, processing, and distributing carcass lamb to the consumption areas of the continental United States. The transshipment model is an extension of the transportation model, enabling a single location to be either a source or a destination or both. ...