studies, under this project heading, on transfer functions. A summary of 

 the procedure is presented helow to provide sufficient comprehensive 

 background information concerning this phase of the study on chick 

 distribution. 



Six model processing plants serve as the bases for constructing the 

 transfer functions. The capacities of these plants are: 600, 1,800, 3.600, 

 5,000. 7.500, and 10,000 birds per hour. Each plant receives broilers from 

 contract broiler producers who in turn receive their chicks from a 

 hatchery. The six hatcheries are models A, C, E, F, G, and H developed 

 in the previous section of this bulletin. Each hatchery has the respon- 

 sibility of delivering chicks to and placing chicks at the broiler produc- 

 ing facilities. Distribution models carry the same letter designation as 

 the hatchery each serves. 



The broiler producing area for each firm is assumed to l)e a perfect 

 circle on a plane with the integrator's fixed facilities (processing plant, 

 hatchery, and so on) located at the center. The size of the area is deter- 

 mined by the requirements of the integrated firm and the density of 

 broiler production on the surrounding plane. The density levels were 

 established at 1,000, 5,000, and 25,000 pounds of 3.5 pound broilers per 

 square mile per year. To produce this output and cover mortality losses 

 during the growing period, the densities are equivalent to 298, 1.491, 

 and 7,455 chicks distributed per square mile per year. 



Any increase in the number of broilers produced requires a propor- 

 tionate increase in the size of the producing area. Plotting these areas 

 for the six firms as perfect circles with a common center and same den- 

 sity level reveals a small circle surrounded by five bands (Figure 2 ) . The 

 circle represents the area required by firm A. Moving out from the cen- 

 ter, each band represents the area that must be added to the existing 

 area to meet the increased area requirement for each successively larger 

 size of firm. 



The circle and each band are considered separate entities with a 

 specified broiler producing capability. Each of these areas produces the 

 same market class of broilers on a schedule that provides a given number 

 for assembly and processing on each scheduled operating day of the 

 processing plant. To assure continuous supply, a quantity of chicks 

 equivalent to the numlier of Jjroilers assembled plus the quantity ex- 

 pected to be lost during the growing out period are distril)uted into the 

 bands for replacement. Table 17 gives the annual chick input and broiler 

 output for each band. 



Table 17. Chicks Dislributecl and Broilers Assembled Annually 

 in Six Broiler Producing Bands 



Band Chicks Distributed Broilers Assembled 



(millions) 



I 1.24 1.19 



II 2.47 2.37 



III 3.71 3.5."i 



IV 2.89 2.77 

 V 5.16 4.94 



VI 5.16 4.94 



29 



