The Integration of Price and Cost Analysis in Developing Processor‐Producer Feasibility Studies

Local communities and area development groups throughout the country are seeking to expand industrial employment and markets for agricultural products. An expansion of agricultural processing industries is particularly attractive since it supposedly accomplishes both of these objectives simultaneously. Development groups are action oriented and require information presented in such a way that specific follow‐up action programs can be implemented. This article summarizes an approach which permits the integration of the two decision‐making entities involved in determining processing feasibility—the processing firm and the farm firm. The approach developed in this article provides a starting point for consideration of processing feasibility by action agencies, raw product producers and potential investors in processing plants.