TABLE OF CONTENTS 



Page 



SUMMARY AND CONCLUSIONS 3 



I. INTRODUCTION 5 



II. OBJECTIVES 6 



III. METHOD AND PROCEDURE 6 



Method 6 



Procedure 7 



IV. ECONOMIES OF SIZE IN FEED MANUFACTURING 8 



Feed Manufacturing Process 8 



Labor Inputs and Costs 11 



Investment and Costs for Feed Manufacturing Facilities 15 



Ownership Costs 19 



Administrative and Supervisory Personnel Costs 22 



Utility Costs 22 



Other Costs 26 



Economies of Size 30 



Short-Run Average Costs 31 



V. COST OF BULK FEED DISTRIBUTION 31 



Procedure 31 



Bulk Feed Distribution Operation 35 



Feed Distribution Model 35 



Investment 38 



Feed Distribution Costs 41 



VI. TOTAL COST FOR FEED MANUFACTURING AND DISTRIBUTION 48 



Effect of Density Level 4^ 



APPENDIX 52 



A. Determination of Feed Mill Capacities and Outputs 52 



B. Poultry Feed Formulations 55 



C. Major Equipment Items for Eight Model Mills 56 



D. Short-Run Average Costs 57 



2 



