chick outputs are utilized within the systeuis. Consequently, these hatch- 

 eries do not have to maintain a sales force in various parts of the coun- 

 try, managerial or clerical personnel to supervise sales, and costs of 

 travel, advertising, and office space associated with the sales program. 



In observed hatcheries integrated with poultry marketing systems, 

 few personnel were required to perform the managerial functions of de- 

 cision making, labor supervision, and clerical work. In hatcheries with 

 less than 500,000 egg capacity, decision making and supervision were 

 often the responsibility of one individual while clerical work was per- 

 formed by personnel hired on a part-time basis. In some cases the man- 

 ager assisted the crew in performing some of the hatchery operations. 

 With increased scale, separation of these responsiliilities became more 

 evident. Managers confined themselves primarily to decision making 

 while a foreman was hired to supervise operations in the hatchery. The 

 foreman was generally a working foreman since he often assisted the 

 crew. Hatcheries exceeding a million egg capacity generally had several 

 workers performing each function. Managers had assistant managers to 

 supervise clerical work and assist in the management process. Several 

 foremen were required, each supervising different operations in the 

 hatchery. 



Estimates on the personnel requirements to perform the managerial 

 functions as well as information on salaries paid were collected from the 

 observed hatcheries. This information was used to determine the require- 

 ments for the eight synthesized hatchery models. Salaries for each of the 

 positions were standardized and applied to the requirements to deter- 

 mine the weekly costs for each of the three process combinations con- 

 ducted in the model hatcheries ( table 12 ) . Management costs range from 

 0.277 cents to 0.143 cents per chick for the hatching process witli opera- 

 tions at 100 percent of capacity. Addition of the service operations in- 

 crease supervisory costs and the cost per chick by a small amount. 



Cost of Supplies 



Supplies for a hatchery include chick boxes, box pads, feeder trays, 

 fumigants, and miscellaneous items such as housekeeping and adminis- 

 trative supplies. Egg cases are not included as a supply item since they 

 are assumed to be provided by the hatching egg suppliers. 



Supply costs are variable since the quantity required varies directly 

 with changes in chick output. For purposes of establishing inventories 

 hatcheries are assumed to maintain a 30-day inventory for a 100 percent 

 of capacity operation. Supply costs were developed from published price 

 lists of hatchery supply manufacturers and dealers. 



Minor economies are evident for supplies over the capacity range 

 considered. The economies are derived through mass purchasing in truck- 

 load or carload lots. Cost per chick, shown in table 13, decreases from 

 0.247 cents for hatchery A to 0.234 cents a chick for hatchery H. 



No supplies are required for debeaking. Vaccine is purchased for the 

 vaccination operation. Many types of vaccine are available for use in con- 

 trolling various diseases. For purposes of this study, vaccine costs are set 

 at $3.00 per thousand chicks vaccinated. Table 13 shows the vaccine costs 

 per week and the chick cost with operations at 100 percent of capacity. 



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