An estimation of the costs associated with commercial broiler production in Virginia

Abstract

This study is a summary of production costs of commercial broilers as reported by a sample of producers and contract feed dealers in the Shenandoah Valley area of Virginia. The results are presented in the form of estimated costs under stated situations of production facilities, performance, and input costs. The presentation of average investment requirements for buildings and equipment needed for the production of commercial broilers should be of particular interest to prospective producers and contract dealers.

Various factor-product and factor-factor relationships are studied along with their effects on both cash and non-cash costs of production. A particular attempt is made to estimate the effects of scale on various production factors and cost items.

The multiple regression approach is used to estimate the effect of scale on building and equipment costs and the effect of weight and age at sale on feed efficiency. The total cost of production is divided into cash and non-cash costs, and an economic appraisal is made, using examples, of operations under varying conditions of factor costs and product prices. Computational methods are presented that will enable an individual producer to adjust these findings to his present or prospective production.methods and facilities.