Table 4. Annual Production and Maintenance Labor Costs 

 for Eight Model Feed Mills 



Investment and Costs for Feed Manufacturing Facilities 



Feed mill investment is the initial dollar purchase price of the dur- 

 able inputs plus their installation costs. The durable inputs include such 

 items as equipment, buildings and land. 



1. Equipment — The kind, type and number of equipment items 

 required for the model mills are synthesized from input-output relation- 

 ships and manufacturer's equipment specifications.^ Each mill has only 

 the manufacturing equipment capacity to produce the five formulations 

 in the specified forms and quantities within an eight-hour day, 



Equipment is divided into seven categories, four of which are con- 

 cerned with the primary manufacturing stages. The equipment cost pre- 

 sented in Table 5 is the delivered price with the equipment ready for 

 installation. The total installation cost for each model is given in the 

 second part of the table. 



Equipment for receiving ingredients consists primarily of screw con- 

 veyors and bucket elevators for conveying ingredients from receiving 

 points to storage bins in the mill. Mills A through D have a single bulk 

 receiving system, and Mills E and F have two bvilk receiving systems. 



Grinding equipment includes screw conveyors to move shelled corn 

 to the hammermills, and pneumatic conveyors for moving the ground 

 materials into working bins. 



The mixing equipment consists of conveyors, weigh buggies or hop- 

 pers, mixers, conditioners, and weighing and mixing control devices. A 

 substantial change in this equipment is required with the shift from ver- 

 tical mixers and weigh buggies in Mill B to mechanized conveyors, hor- 

 izontal mixers, and simple weighing controls in Mill B'. 



The pelleting and fat application stage requires the largest pur- 

 chase price for equipment. This stage includes pellet mills, vertical cool- 

 ers, crumblers, graders, fat application equipment, and conveyors. This 

 stage accounts for approximately 45 percent of the total purchase price 

 of equipment for each mill. 



6 See Appendix C for list of major equipment items for each model mill. 



15 



