MIXING 



Figure 11. 



H- HAND LABOR P- AUGER OR PNEUMATIC 



Handling grain-feeds in New Hampshire from mill to producer's 

 grain storage. 



The additional costs of the equipment for delivering bulk feed are sub- 

 stantial, i.e., from $3,000-6,000 for a mechanized bulk delivery body plus 

 an additional cost for a heavier truck chassis.* In addition, costs of main- 

 taining this equipment are likely to be higher than with bagged trucks. 

 Maintenance problems involve specialized knowledge, possiblv not available 

 locally. Temporarv breakdowns of bulk equipment may also involve the 

 additional costs of securing replacement trucks, sometimes from consider- 

 able distances away, while repairs are made. 



It would appear that the weight of evidence points to the existence of 

 economies in handling grain-feeds in bulk as compared to bags. However, 

 the stage of development of bulk distribution, the area, the particular com- 

 pany involved, and the extent to which the "potential market" can be and 

 has been exploited, all affect the individual case. It is to be expected that 

 in the early stages of developjnent average costs are likely to exceed those 

 for the long-established method. From this situation it mav appear, as 

 frequently contended, that "two methods cost more than one". But this may 

 be a phenomenon of the short- run rather than the long-run, when adjust- 

 ments have been made to bring both methods toward maximum efficiencv. 

 Obviouslv, this end result might come about only after rather drastic 

 changes in capital and organizational structure of the particular company. 

 As with the situation on deliverv route costs, a newer company might have 

 fewer overall problems to solve than an older company where vested interests 

 and traditional methods pose formidable obstacles. 



Some of the factors which presently appear as advantages and disad- 

 vantages in the matter of bulk vs. bagged feed are summarized below. 



* Benson, H. J., op. cit. 



56 



