Optimum size, number & location of freezing works in the South Island, New Zealand : A spatial analysis

Abstract

The meat industry is New Zealand's largest export earner and in recent years has been responsible for approximately 40 per cent of total export earnings. For the industry to maintain or improve its competitive position in export markets it is important to have an efficient assembly, processing and distribution system. One apect of such a system involves the size and location of freezing works. Recent papers by Burridge, Pilling, Ward, and Morrison, Cooper et al., have discussed factors affecting the location of New Zealand freezing works, but no attempt has been made to relate these factors through use of quantitative models. The questions such models would normally attempt to answer include-:.- (a) What is the most efficient locational pattern (size, number and location) of freezing works in New Zealand? (b) What are the significant cost factors involved in such a system? (c) How does the existing system compare with a theoretically most efficient system? (d) How should the existing system be changed to cater for increasing numbers of livestock for slaughter, and changing processing requirements? The last question involves decisions such as whether to upgrade or expand existing facilities, or to establish new facilities at alternative locations. These are important issues in New Zealand at present, with a number of proposals for new works, including the King Country, Central Otago, Northern Southland and the West Coast. The objective of this study is to set up a mathematical model and indicate how it can answer such questions. However the area of interest is the South Island rather than New Zealand. For the former, the model will determine the optimum size, number and location of freezing works. One difficulty in such an approach is that social and political implications of location may be difficult, if not impossible, to quantify. However, given reasonable assumptions, models can be constructed which are capable of generating a range of good solutions which will provide a choice for policy makers