Energy Efficiency in Food Processing in the Southern Region

Food processing accounts for a large part of energy consumption by broiler processing plants the total energy consumed in the food and fiber in the South and determined the impact of those system, second only to household preparation. factors on production costs. Using a regression Havlicek and Capps emphasized that processing model, they found that 74 percent of the variation and distribution of food and fiber require 12 to 17 in energy consumption rates could be explained percent of the total U.S. energy budget. Thus far, by average volume of output, temperature, plant research on energy use by agriculture in the capacity utilization, and energy prices. southern region has concentrated on production Unger selected 14 firms from 44 industries in of raw products at the farm level (Debertin and the food and kindred product group of the govPagoulatos) and consumption of food in the home ernment's Standard Industrial Classification (Lovingood and Goss; Rhee and Drew). The (SIC) system to study levels and variations in large processing and distribution network has energy use. His analysis emphasized the sensitivbeen generally excluded from analysis because of ity of food processing to natural gas prices and a lack of information on energy used in these supplies. Using a Pearson chi-square statistic, industries. Comprehensive data bases on energy Gesell compared energy source efficiencies with use in food processing have been relatively lim- size of plants in Pennsylvania to determine if ited because of the imperfectly competitive na- energy efficiencies are related to plant size. Reture of food processing industries and because of suits indicated that large firms tend to be more unfavorable costs and benefits of compiling such energy efficient than small firms. information. Because of a lack of accurate and Whittlesey and Pfeiffer measured the impacts reliable data, little is known about the behavioral of energy supply interruptions and found that for relationship of energy use in food processing and energy supply reductions greater than 10 perdistribution. cent, output would be reduced by more than 10 The general objectives of this paper are to de- percent. A 100-percent increase in the price of scribe energy use in food processing and to de- energy was estimated to increase processing velop an economic model to explain differences costs by less than 5 percent. Unger cited differin energy efficiency among food processing in- ences in product mix and functions performed at dustry groups. Energy efficiency is defined as plants as factors influencing energy efficiency. average product of energy or the amount of pro- Casper indicated that regulations established by cessing a firm extracts from a standard unit of federal agencies have reduced energy efficiency energy. The model will be used to analyze pro- of some processors by 1 percent. cessor sensitivity to energy price changes, Sinclair et al., measured the intensity of energy energy efficiency effects of plant size, and rela- use of manufacturing establishments in South tionships between market power and energy con- Carolina in order to determine the potential for sumption patterns. This research focuses on di- energy savings. Their study found that a large rect energy expenditures made by food pro- potential for energy savings could be realized by cessors. Major energy-use categories generally some establishments with the substitution of include raw product assembly; food processing, non-energy inputs for current energy inputs. preparation, and storage; maintaining plant and office facilities, and finished product distribution.