First, western Pennsylvania lacks livestock-processing capacity. There are very few processors in the three counties studied, and most are small scale. Second, the region lacks access to livestock production input suppliers, particularly those with an in-person service component, such as farm support and veterinary services.
"Only Westmoreland County has a large enough base of college-educated labor to support an expansion of service providers from its own human resources," Abler said. "For Armstrong and Indiana counties, most of the college-educated labor needed to expand farm support and veterinary services would have to come from elsewhere."
Third, the researchers point out that the existing transportation infrastructure in western Pennsylvania is not sufficient to support a large-scale livestock industry. The livestock industry relies on efficient transportation systems to supply inputs and move products to retail markets, making it important for livestock farms, input suppliers and livestock processors to be closely linked to the local transportation infrastructure.
Fourth, the existing livestock industry in western Pennsylvania lacks "agglomeration economies" — the benefits in terms of proximity to suppliers, workers and customers that businesses obtain by locating close to each other — to build on.
Water-quality limits for the Chesapeake Bay watershed set by EPA could lead to a downsizing of the livestock industry in the watershed, Abler explained. However, it does not automatically follow that any reductions in livestock production in the Chesapeake Bay watershed would be offset by increases in production in western Pennsylvania.
"For livestock products that are highly perishable and have high distribution costs, such as fluid milk and ice cream, proximity to East Coast markets may favor western Pennsylvania over other substitute locations," Abler said. "For other livestock products, such as meat, cheese and butter, if production facilities in the Chesapeake Bay watershed were forced to close because of water quality constraints, they might not relocate in western Pennsylvania, but instead might move out of state."
The study's findings also suggest that addressing the challenges and opportunities of expanding animal agriculture in western Pennsylvania will require robust partnerships among local stakeholders, said research team member Walt Whitmer, senior extension educator. "Bringing together producers, processors, state and local agencies, local governments, economic development and non-profit organizations, and technical assistance and education providers, will all be critical to making the most of these opportunities."