Seasonality in the New Zealand meat processing industry
Seasonality in the New Zealand meat processing industry
Sheppard, R. L.
Sheppard, R. L.
Date
1982-01
Type
Monograph
Collections
Fields of Research
ANZSRC::1402 Applied Economics , ANZSRC::140209 Industry Economics and Industrial Organisation
Abstract
The research reported in this publication is a part of the
Agricultural Economics Research Unit's continuing research effort
into marketing and processing charges for livestock. Research
Report No.103 ("A Study of Excess Livestock Transport Costs in
the South Island of New Zealand" by R.D. Inness and A.C. Zwart)
presented the results of an analysis of the cartage pattern of livestock
to freezing works for the 1977/78 season. This study identified a
transport penalty cost of about $0.5 million associated with seasonality
of sheep and lamb supply in the South Island.
The present study attempts to provide an economic assessment
of the seasonality associated with the operation of the New Zealand
meat processing industry and the relationship between seasonality
and overcapacity. The author reviews the fixed/variable nature of
costs in the freezing industry and suggests that the future path for
the industry is likely to be the replacement of high labour fixed costs
by lower capital fixed costs via the establishment of smaller higher
technology works. This would allow more effective and efficient
operation during the off-peak period of slaughter and may allow the
payment of premiums to encourage off-peak production.