To move from 2,400 to 3,600 and from 5.000 to 7,500 broilers per hour, 

 as the analysis of space requirements and building costs indicated is desir- 

 able, an additional investment would be required. These amounts approxi- 

 mate $50,000 and $125,000 respectively. 



Laljor Force Required 



A third major impact of changing from producing New York Dressed 

 to eviscerated birds and from non-inspected to inspected status involves 

 the labor force required. Table 17 summarizes these changes. Some of the 

 increase in operating personnel results from increased maintenance, repair, 

 and cleaning requirements. An additional increment reflects added person- 

 nel to assist Federal Inspectors. However, most of the increase reflects added 

 plant functions. Management personnel increases reflect greater require- 

 ments for supervisory, clerical, and overall management functions. 



Impacts on Costs and Economies of Scale 



Previous analyses indicate that present plants of good construction will 

 experience little difficulty or cost in meeting Inspection requirements. Most 

 of the impact on plant costs is associated with addition of the eviscerating 

 and cutting-up operations. 



Although the dollar investment required to meet Federal Inspection may 

 seem sizeable, it does not translate to significant increases in unit costs. 

 Admittedly, the New York Dressing model plants used for comparative 

 purposes in this chapter represent better-than-average units. Nevertheless, 

 even a several-fold increase in building costs over those projected could 

 occur without measurably affecting unit costs. 



Addition of the evisceration operation, including the increase in equip- 

 ment and labor force which it necessitates, cannot be attributed to Federal 

 Inspection requirements. Superimposing the eviscerating and cutting-up 

 operations about doubles the total unit costs for capital ownership and 

 use, operating labor, electricity, ice, and water. Comparison of the two sets 

 of model plants with respect to these costs (Table 18) shows a widening 

 of the absolute cost differences between plants of various capacities when 

 these operations are added. The addition of the eviscerating and cutting-up 

 operations does not improve the relative competitive position of smaller 

 plants. 



The real impact of changing from uninspected to inspected status and/or 

 from producing New York Dressed to eviscerated birds will depend on the 

 current level of efficiency of the individual unit. In practice, few units 

 approached the levels of efficiency projected for either set of model plants. 

 Hence, if most units would maximize internal economies, changeover costs 

 might be more than offset. 



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