Siimniary and Conchisioiis 



This study was undertaken with four objectives in mind. One objec- 

 tive was to determine the physical inpvit-output relationships, operation- 

 al procedures, and costs for broiler chick hatching and eventually to 

 synthesize the long-run average cost curve. The second was to determine 

 the effect on hatchery operations and costs from adding two types of 

 service operations, debeaking and vaccination, often performed in hatch- 

 eries. Third, to synthesize the costs of distributing chicks by motor 

 vehicle under each of three different levels of Ijroiler production density 

 for several different sizes of hatchery operations. This objective was to 

 determine how costs change with increasing size of operations and in- 

 creasing production density. Fourth, to combine the synthesized hatch- 

 ing and chick distributing costs with broiler assembling and processing 

 costs, to acquire insight concerning the long-run costs of the integrated 

 poultry system. 



Eight model hatcheries were synthetically constructed and operated. 

 Their egg holding capacities and annual chick outputs range respectively 

 from 121.800 eggs and 1.30 million chicks to 2,029,500 eggs and 21.71 

 million chicks. 



Labor inputs were classed in one of two groups. Labor inputs for 

 performing the various production operations and surveillance of the 

 incubating and hatching in conjunction with production operation, were 

 the variable labor input category. The labor input used specifically for 

 surveillance was the surveillance labor input category. Treatment of 

 labor inputs in this manner revealed how increasing scale permits 

 spreading of the variable operations over an increasing proportion of 

 each day and diminishes the lalior requirement for surveillance. 



Labor productivity for hatching increases rapidly with increasing 

 scale for two reasons. First, the amount of otherwise unproductive time 

 associated with the surveillance operation diminishes rapidly. Second, 

 different technologies are adopted which increase labor productivity. 

 The principle changes are in traying eggs and tray washing. Labor 

 productivity increases from 145 chicks per man-hour for a hatchery with 

 an egg capacity of 121,800 to 710 chicks for a hatchery with an egg capa- 

 city of 1,522,300. Labor cost at 100 percent of capacity decreases from 

 0.932 cents per chick to 0.190 cents. 



Economies in building ownership exist throughout the range of 

 hatcheries analysed. These costs decline from 0.130 cents per chick for a 

 hatchery with egg capacity of 121,800 to 0.061 cents for a hatchery with 

 egg capacity of 2,029.500 with operations at 100 percent of capacity. 



Economies in equipment ownership exist but are extremely small 

 and discontinuous. Cost per chick ranges from a high of 0.305 cents to a 

 low of 0.271 cents with operations at 100 percent of capacity. 



Economies were also found to exist in management, supplies and 

 miscellaneous input groups throughout the range of hatchery capacities 

 analysed. Management costs decrease from 0.277 cents to 0.143 cents per 

 chick. The economies from supplies are small. Cost of supplies decrease 

 from 0.247 cents to 0.234 cents per chick. Economies were also found for 

 the miscellaneous items such as electricity and fuel. These costs decrease 

 from 0.115 cents to 0.069 cents per chick. 



