Table 13. Aggregate Costs of Model Systems of Assembling and Processing 



1957 New England Chicken Output 



Volume Model IVi Model V2 



(million pounds) 



Assembled by New England firms 469.6 469.6 



Processed by New England firms 429.9 429.9 



Live Poultry Hauled from New England 43.1 43.1 



Systemic Costs (million dollars) 



Live Poultry Hauled from New England 1.3 1.3 



Assembled and Processed within New England 



By Commercial Plants 20.8 12.8 



By Other Plants 1.7 1.7 



Total Assembly and Processing 22.5 14.5 



Total Costs 23.8 15.8 



1 The 1957 Assembly System. 



~ Fewer but larger plants with exclusive supply areas handling same volume. 



areas in Figure 9 permit continued operation by remaining plants in 

 many sections where they traditionally operated or which would have 

 been advantageous to them on the basis of Figure 8. 



In the Maine supply area, one plant would be concentrating on fowl 

 and the other three almost entirely on broilers. In Vermont, fowl would 

 predominate. In the New Hampshire, Massachusetts, and Connecticut 

 areas fowl would be more important than in Maine. Hence, all of these 

 plants would handle 15-25 percent fowl. These adjustments are necessi- 

 tated by the availabilitv of particular market classes from local pro- 

 duction and influence the maximum plant size considered feasible in 

 the various supply areas in Figure 9. 



Just as assembly cannot be viewed in isolation from processing, so 

 the combined assembly and processing functions cannot be viewed with- 

 out regard for distribution. Minimization of the movement of poultry 

 between plants and ultimate consimier, including saturation of local 

 needs from adjacent production, can be accomplished with a model 

 system similar to that shown in Figure 9. This would be true whether 

 a least-cost distributing system involved an expanded role in direct-to- 

 store delivery by plants or service from centrally located distributing 

 points in each geographic area. 



39 



