A Rate/Cost Analysis of Nebraska Meat Trucking Activities with Livestock Trucking Cost Comparisons

This study was designed to measure costs of long-distance shipment of meat by motor carrier. Costs were compared with published rates for meat shipments by truck, rail and trailer-on-flatcar (TOFC). Finally, meat trucking costs were compared with costs of trucking meat-equivalent amounts of livestock. Results of the study provide a partial basis for evaluating the economic merits of expanded livestock production activities in grain-surplus Great Plains locations. Such an expansion might aid in the economic development of the region and ease the chronic problem of rail freight-car supply. Proposals ranging from extension of present regulation to cover livestock trucking to deregulation of all transportation activities are in need of economic scrutiny. This study sheds light on the merits of economic regulation of the meat trucking industry. The study also analyzes effects of the changing energy situation on delivered costs of meat. Such cost evidence has implications for national energy policy. Finally, results provide commercial truckers with a standard against which they can measure efficiency of their own operations. Shippers or other prospective truck owners are afforded guidelines as to the feasibility of truck operation.