Contents 



SUMMARY 2 



I. OBJECTIVES AND METHODS OF STUDY 5 



II. CLASSIFICATION OF PROCESSING PLANT COSTS AND 



THEIR BEHAVIOR IN RELATION TO VOLUME 9 



Variable Operating Costs 10 



Constant-unit Operating Costs 12 



Fixed Operating Costs 13 



Fixed Overhead Costs 13 



III. ECONOMIES OF SCALE IN STRAIGHT-LINE EVISCERATING 



PLANTS 15 



Broilers 15 



Fowl 17 



Importance of Cost Groups in Producing Economies of Scale 21 



Capital Investment 23 



Plant Wages and Salaries 27 



-o'- 



IV. SOME IMPLICATIONS OF ECONOMIES OF SCALE 36 



Systemic Efficiency 37 



Small Plant Survival 40 



V. CHANGES REQUIRED TO ENABLE PLANTS TO PRODUCE 



EVISCERATED POULTRY UNDER INSPECTION 45 



Space Requirements and Building Costs 45 



Equipment Costs 47 



Labor Force Required 51 



Impacts on Costs and Economies of Scale 51 



VI. APPENDIX 52 



