Effect of size of delivery and type of market outlet on cost of delivering table eggs by selected egg grading plants in Virginia

Abstract

Data on egg delivery routes were obtained from a sample of nine selected Federal-State egg grading stations located in four different areas of Virginia. These data included time and distance requirements, route characteristics and a basis for computing costs.

Based upon the time requirements--which included driving time, personal time and time at the stop--and the distance traveled, cost estimates were obtained. Cost comparisons were made by size of plant, size of delivery and type of outlet. Wide variation in delivery costs were found.

Delivery costs showed a meaningful decline as volume of delivery increased. Significant differences in delivery costs among different types of market outlets were found. Volume-cost relationships observed indicated that larger volumes of eggs were consistently delivered to certain types of outlets at the smallest unit cost.

The marginal cost of delivering selected volumes of eggs specified distances was calculated.