The studies of the spatial activities of hroiler assembly and chick 

 and feed distribution had the following objectives to:- 



1) Determine the relationship between increasing firm size and 

 unit spatial cost at each of three broiler production density levels. 



2) Determine the relationship between increasing production den- 

 sity and unit spatial cost for each of six firm sizes. 



The objectives of this report are to: 



1) Summarize and determine the total unit cost of the spatial 

 activities, broiler assembly and chick and feed distribution, in relation 

 to increasing firm size and production density. 



2) Determine the potential reductions in cost from increasing 

 production density. 



3) Determine the effect of distance on the unit spatial cost. 



The research method used is the budgetary or synthetic model 

 construction and operation of model firms to derive costs. This method 

 is adopted since it is essential that the results of the analysis of each 

 activity be comparable, additive, and related to the capacity and volume 

 of tiie primary activity of the firm, broiler processing. Production func- 

 tions for each activity are developed from technical data provided by 

 cooperating firms. Costs and prices are standardized and applied to the 

 input requirements to derive least-cost .solutions. This method allows 

 the development of costs for specified sizes and outputs of firms and 

 eliminates many of the intra-firm inefficiencies and variations that exist. 



II. The Spatial Model 



Six model processing plants are the basic units for establishing the 

 requirements of all the other activities of the firm. These processing 

 plants range in hourly capacity from 600 to 10,000 liroilers and have 

 annual outputs ranging from 4.15 million to 69.16 million pounds (live 

 weight). 



Live broilers are produced at three production density levels for 

 each of the six firms. The lowest level considered is 1.000 poimds per 

 square mile per year, a level most firms have born able to surpass. The 

 intermediate level is 5,000 pounds per square mile per year and is 

 typical for many firms. The highest level considered is 25.000 pounds 

 per square mile per year, which is an extremely dense production situa- 

 tion. 



-Henry, W. F. and C. R. Burbee, Marketing:. ISeic En'^hmd PoitUry, 5. Effects of 

 Firm Size and Production Density on Broiler Assembly Costs. University of New 

 Hampshire, Apriciiltiiral Experiment Station Bulletin No. 482, April 1964. 



Burl)ee, C. R. and E. T. Bardwell, Marketing; I\eiv England Poultry. 6. Economies 

 of Scale in Hatching and Cost of Distributing Broiler Chicks. University of New 

 Hampshire, Agricultural Experiment Station Bulletin No. 483, 1964. 



Burbee, C. R. and E. T. Bard>\ell. Marketing i\ew England Poultry, 7. Economics 

 of Mixing and Distributing Broiler Feed, Manuscript in preparation. 



