as related to time, the number of years to accumulate the capital is de- 

 termined. 23 



DEFINITION OF COEFFICIENTS AND OTHER CONDITIONS 



Flock Size 



Four model sizes are used in the budget analyses. These models have 

 flock capacities of 10,000, 20,000, 35,000 and 50,000 broilers and are 

 identified as models A, B, C, and D respectively. It is assumed that all 

 models can be operated with existing family labor at present or in the 

 case of luodel D, in the near future. 



Technology 



All models are assumed to have the same standards of technology. 

 Buildings are constructed of the same materials, are insulated and 

 centrally heated, and contain bulk feed facilities. Feeding is accomplish- 

 ed manually in both growing phases, and watering is automatic in the 

 second phase. The ratio of growing equipment such as waterers and 

 feeders per thousand broilers is constant for all models. The number of 

 square feet per broiler housed is 0.8. Thus, the models have 8.000, 16,000, 

 28,000, and 40,000 square feet of house space respectively. 



Average Payments to Producers 



Three different levels of producer payments are used in determining 

 annual total revenues for the models. The unit of measurement is in cents 

 per bird per week housed. This measure is used because almost all pay- 

 ment formulations can be converted to this basis. 



The highest payment is 1.0 cent per bird per week. This is a rate that 

 the more efficient growers can receive from an integrator. The second 

 payment is 0.75 cent per bird per week. This is a payment quite common 

 to the industry. The lowest payment is 0.5 cent per bird per week, and is 

 the minimum guarantee payment stipulated in many contracts. 



Level of Output 



Three different levels of output are considered within the production 

 possibilities of the model unit. 24 The highest level is 5.15 flocks per year 

 requiring 45 weeks to produce, the second level is 4.0 flocks per year re- 

 quiring 35 weeks; and the lowest level is 3.0 flock per year requiring 

 26.2 weeks. 



Family Consumption Expenditures 



Several different levels of expenditures are used in developing the 

 budgets. For models A and B, annual expenditures are $3,600 and $4,500. 

 The figure of $3,600 is the approximate average wage level of industrial 

 workers in northern New England. 25 The figure $4,500 reflects expecta- 

 tions of future consumption expenditures. 



23 Grant and Ireson, Principles of Engineering Economy, 4th Edition, Ronald Press. 

 New York, 1960. 



2i See estimates of flock production for 1960 in Table 2. 



25 Employment and Earnings, U.S. Department of Labor, Vol. 6, No. 11, May, 1960. 



35 



