today have such an area, but il is not being fully utilized. The present prac- 

 tice is to slaughter out-of-crates, insofar as possible. Hence, holding ca- 

 pacity in the feeding station of plants developed in this report provides 

 space only for an occasional truckload of birds. 



The enactment of the Poultry Products Inspection Act makes desirable 

 the construction of model plants which would comply with the provisions 

 of this Act and regulations issued pursuant to it. This is accomplished for 

 all sizes of plants projected, inasmuch as even plants not selling in inter- 

 state commerce may face more stringent State or local regulations in the 

 future. 



This study deals with plant operations only, covering the fixed and vari- 

 able cost items involved from the receiving of live birds to the loading 

 out of processed birds, inclusive. Since optimum adjustments cannot be 

 predicted on the processing segment alone, later reports will treat assembling, 

 distributing, and integration of production and marketing functions. These 

 subjects are likely to have considerable bearing upon the eventual choice 

 of processing facilities in particular types of producing areas and market- 

 ing situations. The functional items assigned to the procurement, plant 

 operations and distribution phases of poultry processing units are diagramed 

 in Figure 1. 



Detailed data on plant facilities and layout, equipment, labor force, physi- 

 cal inputs and outputs, and accounting costs were obtained from 15 process- 

 ing plants in New England. These plants were among the most efficient in 

 their size groups, and approximately corresponded in capacity to some of 

 the synthetic model sizes selected. General information, previously obtained 

 from a survey of a larger number of units, and descriptive material, plans 

 and data from discussions with representatives of firms selling equipment 

 and supplies to the poultry processors were also used. 



Study of economies of scale is usually accomplished by synthesis of model 

 plants of different capacities and by standardization of their operations. The 

 10 model plants constructed for subsequent analyses were standardized 

 insofar as available technologv and least-cost methods permit. Such stand- 

 ardization relates to facilities, equipment and practices. Both the resource 

 and input-output levels were synthesized on the basis of known attainable 

 levels of requirements and efficiency. Basic projections were made for the 

 100 percent of capacity level for each model size. Input-output data from 

 actual plant records formed the basis for extending certain unit costs to 

 lower and higher levels of output. Cost rates were those generally appli- 

 cable during 1957-58. 



In an earlier study, the percentage utilization of plant capacity was ob- 

 served to increase with plant size. This situation may relate to the magni- 

 tude of plant and equipment costs, to emphasis on distribution in lieu of 

 processing, and to the supplv situation.- In the current analysis, concern 

 is with the processing plant alone. Flexibility of supplv and capacity of out- 

 lets is assumed. Projection of levels of operation ranging from 30 to 130 

 percent of capacity for each size were used to develop individual plant cost 

 curves. 



^Roirers, (;. 15., W. F. Heiiiy. A. A. Miowii. K. T. Bardwell. MarLrtinn Sew En^ilaiul 

 I'oitltrv, L Characteristirs of the I'rocvsdng Industry, Univ. of N. II.. Aj^ric. Exp. Su. 

 Bui. 444. Sept. 1957, p. 23-24. 



