delivered by a constant delivery charge per unit, or (b) totalling units 

 times variable charges where delivery charges vary with quantity. Calcu- 

 lated costs are generally derived by adding equipment costs (mileage times 

 an average per mile value for fixed and operating costs) and labor costs 

 (driver and helpers' time at given rates per hour). 



Such an analysis will aid to a degree in spotting some problem routes. 

 However, without further analysis it does not show the comparison of each 

 route with its potential efficiency. Use of estimated values for delivery charges 

 would in itself bias conclusions reached about particular routes. It is felt 

 that delivery charges per unit should evolve from cost analysis. Hence, it 

 is suggested that time-breakdown studies are a better approach to studying 

 route efficiency, and likely to yield more dependable results than the route 

 income approach. 



Table 25. Costs per Ton of Loodingl^ and De'ivering Feed 

 by Alternative Methods, Assumed Conditions 



Tons Delivered 



M.-thod 2 4 6 8 10 12 11 16 18 



Regular bagged 

 feed delivery $8.61 $4.53 13.20 $2.52 $2.15 $1.88 $1.79 $1.98 



Bulk feed 



delivery 11.00 5.58 3.77 2.87 2.32 1.96 1.70 1.51 1.58 



Bagged feed: 



50% unloaded by 



hand, 50% by 



hopper-elevating 



mechanism 9.83 5.17 3.48 2.68 2.20 1.89 1.66 



'■Regular bagged feed loaded by one man by hand; bulk feed loaded by gravity from overhead bins; 

 bagged feed loaded for combination method by one man using hand truck. 



5. Handling Bulk vs. Bagged Feed 



TH E distribution of grain-feed in bulk has substantially increased since 

 the method was introduced into New Hampshire a few years ago. As 

 of December 1, 1952, it was estimated that about 3 percent of the total 

 grain consumed in the State was delivered in bulk.* For 1953, it was esti- 

 mated that the proportion was about S^/i percent on an annual average basis. 

 On the basis of data obtained during the early part of 1954, the annual 

 average rate of bulk feed deliveries in 1954 probably exceeded 5 percent of 

 total usage of grain-feeds in New Hampshire. 



The development and operation of bulk feed distribution in New 

 Hampshire to early 1954 was largely confined to the southeastern area of 

 the State, in the counties of Hillsboro, Rockingham, Merrimack, and Straf- 

 ford. This area offered the most fruitful field to convert present customers 

 or obtain new customers in sufficient numbers to permit some of the econo- 

 mies of bulk feed to be realized. 



* Woodworth, H. C, Handling Grain in Bulk on New Hampshire Poultry Farms, 

 N. H. Agr. Exp. Sta., Ag. Ec. Research Mimeograph No. 11, Jan. 1, 1953, p. 1. 



49 



