feed conversion of 2.10 or .82 pounds of starter and 1.28 pounds of 

 finisher for each pound of live weight. Breeders are assumed to con- 

 sume six pounds of starter and fourteen pounds of grower per hird. 

 During the laying period, 8.5 pounds of feed are consumed per dozen 

 eggs hatched. On the hasis of these coefficients, approximately 85 per- 

 cent of the feefl mixed is hroiler feed. Tahle 1 shows the quantities of 

 feed distrihuted hy each firm annually. 



All feed is assumed to he delivered in hulk form hy 12-ton-capacity 

 hulk trucks. The driver of each truck performs the loading operation 

 at the feed mill, drives the truck, and unloads the truck at the farms 

 without any direct assistance. There is a managerial staff to organize and 

 direct operations. 



Only one truck size is used in this activity. It is the largest straight 

 type allowed under existing institutional conditions in several New Eng- 

 land states. The truck has four three-ton compartments for carrying 

 from one to four different orders or formulations. Unloading is accom- 

 plished hy an air system mounted on the truck. 



Tahle 5 lists the feed distrihution costs for each firm at each den- 

 sity level. Costs are categorized as truck, driver, and other. The last 

 category includes the following items: managerial and clerical salaries, 

 supplies, utilities, office space and equipment, and garage space. 



At the lowest density level, the feed distrihution cost per pound of 

 finished hroiler increases from 0.475 cents for firm A to 0.770 cents for 

 firm D. Increasing firm size at the intermediate density level has the 

 same effect on the unit cost for feed. The cost increases continuously 



Table 5. Feed Distribution Costs in Cents per Pound of Live Broiler 

 for Six Firms at Three Density Levels. 



Firm Truck Driver Other Total 



A .296 .135 .044 .475 



B .400 .151 .037 .588 



C .465 .167 .032 .664 



D .552 .187 .031 .770 



A .169 .099 .044 .312 



B .205 .102 .036 .343 



C .222 .108 .030 .360 



D .254 .117 .029 .400 



E .301 .127 .027 .455 



F .342 .137 .027 .506 



A .117 .084 .044 .245 



B .106 .080 .034 .220 



C .118 .082 .030 .230 



D .127 .085 .028 .240 



E .147 .089 .026 .262 



F .164 .093 .026 .283 



16 



