THE SIZE AND LOCATION OF SLAUGHTERING PLA NTS IN BAVARIA

For years the slaughtering-sector in Bavaria has been characterised by overcapacity and poor profitability. There is an increasing need for a change of structure in response to falling cattle production, the EU meat-directive taking effect, poor economic conditions and the inadeq uate financial situation of the municipals. The object of this papers is to analyse the Bavarian slaughtering sector and to determine the op timum size and location of slaughter plants which would minimise trans portation, slaughtering and distribution costs. This is important for both animal protection and competition in regional meat markets. The p roblem has been characterised as a facility-location problem solved us ing a large scale mixed-integer programming-model by MOPS. The results show, that it would be profitable to decrease the number of slaughter plants in Bavaria from the 1993 level of 71 to 24 retaining existing plants. The model predicts, that a longterm structure of eight to ten large new plants would be optimal, reducing costs by about 25%. The in vestigated solutions are neutral in terms of decreasing energy costs a nd local fees.