May 1964 6'5 @ Z @l- CZ é III-b m PG = E. 0%» =5 P": = L1." t: P“: ll c‘! =5 @- 6B P! é” = 9+ "-1 99 5 e-h Q. ‘ z» u . ¢ .1: a, F ' " W- J3. s? v ,. "~ . ". ‘ ‘A: .K H a . _" i: ; x. . n. *' i“ q m -I‘ .‘ ‘ <1’ 1 é‘ > .1 3Q _. . nxns A&M umvcnsnv mas AGRICULTURAL zxvzmmzursmnnu - - - TEXAS AGRICULTURAL EXIENSIUN SERVICE College Station, Texas Contents Introduction Procedures Broiler Production—Shelby County Growers Facilities Required for a Commercial Broiler Enterprise A Land U_"u““""“““_"“““"“"““"""“;_""_""“""- Broiler Houses and Building Accessories Feeders - Water Troughs and Water Systems Brooders Feed Tanks Ownership and Upkeep Costs—Broiler Facilities -. Depreciation Upkeep and Repairs Interest Taxes Other Costs of the Broiler Grower Heat for Brooding Electricity for Lighting Labor—Regular Care Labor-—Catching Birds Cleaning Out Manure Costs and Returns—Contract Broiler Production Part-time-Broiler Enterprise .... Full-time Broiler Enterprise @\l0 000000 00U1U1U1 UIUIUIUI-h-B-B h! h) (i0 AUTHORS A. C. Magee B. H. Stone B. C. Wormeli Professor Junior _ Extension Poultry ' Economist Husbandman Department of Agricultural Department of Poultry Economics and Sociology Science Texas A&M University FEW EXCEPTIONS, Texas broilers are now {grown with some type of contractual arrange- ,_ The contractor plays the role of supplier, ier, risk-bearer and general manager of the tion. He provides the baby chicks, all the nd litter and pays for debeaking and medica- V he grower furnishes the buildings and other ies and all of the labor to care for the birds. ~.Texas growers commonly furnish electricity eat for brooding. i general, broilers are produced under three a of operation. In the first system, growing s is only a part-time job and includes those where broilers are not the major farm enter- , Other part-time growers have an off-farm job, groilers are raised to supplement the family in- a Usually the part-time grower owns one or broiler houses and has capacity to raise from to 12,000 birds at a time. ith the second system, broiler growing is a enterprise and is primarily a full-time farm j ion. In some instances the enterprise is large to require hired help in addition to the or and his family. A man who operates a full- roiler enterprise usually has capacity for grow- ,000 to 48,000 birds at a time. rowers included in the third system of produc- g n the houses and all facilities but do little or f.» the work of raising broilers. Labor required enterprise is all hired. Frequently, the grower Y] urban business which occupies most of his This system usually involves a relatively large “on with capacity to raise 50,000 to 60,000 or irds per batch. The grower has a large invest- 10m which he expects a return similar to what ital would earn in other investment oppor- production has continued to expand, many ‘ns have been raised concerning the grower’s nd returns when broilers are raised under t. Such questions concern operators of both in and full-time enterprises. ntracts for broiler production vary in Texas. lower may be paid a stipulated amount per it per pound of live weight marketed. The i frequently includes a relatively low guar- lus some type of incentive payment. Incen- yments may be associated with one or more Jollowing: (l) feed conversion, (2) weight ; sold, (3) mortality, (4) the price of broilers 3 a share of the“ overall profits of the enter- wers need information concerning costs to g broiler production in comparison with ‘ternative enterprises and in evaluating the . s kinds of broiler contracts being used. Costs of Growing Broilers Under Contract A study was initiated in 1961 to determine the costs incurred by the growers of contract birds and to determine the feed conversion, mortality rates and broiler weights. PROCEDURES The cooperation of nine Shelby County broiler growers was obtained for the study, Figure l. First, an inventory was made of all buildings and other facilities associated with the broiler enterprise. In- formation was then obtained for each batch of broilers raised during 1961 and 1962. These data included the number of chicks put in, death losses, number of birds marketed, age at which birds were marketed, total live weight of birds sold, total amount of feed used, litter requirements, brooding and electricity costs and the expenses incurred in the upkeep of broiler houses and other facilities. Also obtained was the amount of labor used in growing broilers as well as the cost of all labor hired to care for the birds and for catchers and for cleaning out the houses. The contractor's cost for debeaking, vaccination and other medication was secured also. These data were used as the basis for setting up models for estimating the grower’s costs and returns from both a typical part-time and full-time broiler enterprise. BROILER PRODUCTION—SHELBY . COUNTY GROWERS Shelby County broiler producers raised from 4 to 5 batches of birds per year. The average was approximately 9 batches in 2 years or 4% batches annually, Table l. Data were obtained for produc- tion of approximately 1 million broilers. By hav- ing 2-year records, seasonal difference in efficiency due to temperature was overcome. Throughout the study, death losses were rela- tively low. Among individual growers, losses ranged from less than 2 percent to 4.1 percent and averaged 2.62 percent. It should be noted that this loss did not include the usual 2 percent “extra” chicks fur- nished by hatcheries. The age of broilers marketed varied from 62 to 66 days and averaged approximately 9 weeks. The average weight of birds marketed was 3.42 pounds. On the average, 2.31 pounds of feed was used for each pound of live weight marketed, Table 1. In other words, these growers marketed an aver- age of 43.3 pounds of live broilers per 100 pounds of feed used. The details of the contracts under which broil- ers were produced varied substantially among grow- ers. Also, the contract was sometimes adjusted be- tween batches of broilers raised by the same grower. Changes in the broiler market were usually respon- sible for such adjustments. Contracts were reported in which the grower was paid according to the num- 3 lib IIVII é n- ‘g’ coouu: acuvsou nuum um ""‘°°"' vounc neuron JADI Ins; WOOOIDSOUI "W uaxzn onus n ro VAR ZAIDT IAN "°°° aomson nus (“T ERATM ILVLIIQ IIINILS llovm "ii- s-ron: IRLEIINAN MIL‘ convzu. u“ SUI Sill BELL IINCY IHLAII MASON LLANO WKLILIISOII antes»: "W" . TU! IASYROP AUSTIN nun ""2 ' FAYIYTE gm“; minus I IMO! A c“ II WEI-LI Figure l. The shaded urea shows Shelby Couniy, where the study was made. East Texas is c muior broiler-producing urea. ber of birds marketed at rates ranging from 4 to 6 cents per bird. Other contracts provided for pay- ment based 0n the pounds of live birds marketed. Here the rate ranged from 11/2 to 2 cents per pound. A few contracts called for the grower to receive a guaranteed amount per bird or per pound of live weight marketed, plus a bonus. The bonus might be based on a feed conversion rate above a specified minimum or based on a share of the profits from the enterprise. FACILITIES REQUIRED FOR A COM- MERCIAL BROILER ENTERPRISE A few of the older broiler houses included in the study were of 3,000 to 9,000-chick capacity. How- ever, a large proportion of the houses were recently constructed, measured 252 feet by 40 feet, and housed 4 12,000 chicks. Table 2 gives data for hous of 12,000-bird capacity, since almost all g constructed broiler houses in Shelby Co A of this size. It should be noted that inves penses shown in Table 2 are the cost of n, ties in all instances and are typical of ‘ ment for facilities required to start a broi prise now. p; 7 Land . There should be ample open area» broiler houses for convenience in loading birds, cleaning out the houses and unloa These conditions are usually met by hav‘ twice as much open area as the house occu this basis, one house with a 12,000-bird) should be located on approximately l a i) four-house unit on 3 acres of land. 1', ment cost for land was calculated at $100? Table 2. i Broiler Houses and Building Ace-z’ The $4,000 cost for a new broiler h feet by 40 feet, was for a building without i‘ None of the houses on the farms studied, sulated. Hardware for accessories was in the above cost. The useful life of such a was estimated at 20 years and was the basis depreciation was calculated. '5 TABLE l. BROILER PRODUCTION—NINE GROWERS, 1961-63 Average Range for -=_ Items for nine " Unit growers From Batches of broilers per grower (2 years) Number 9 8 Chicks started (2 years) 1 Number 987,100 20,900 Broilers sold (2 years) Number 961,283 20,226 Mortality rate, , all farms? Percent 2.62 1.8 i} Total live weight 1 broilers sold, (2 years) Pound 3,292,130 71,190 Average weight per broiler, all growers Pound 3.42 3.35 Age of broilers sold Day 63.7 62. Total feed used, all farms (2 years) Pound 7,597,710 158,735 Average feed per pound 5 live broiler Pound 2.31 Average feed conversion, i all growers“ Percent 43.33 42.81 ‘Does not include the 2 percent “extra” chicks c0 nished at no extra cost. _A 2Mortality rates are over and above the 2 percent i, nished by hatcheries. ~ “Pounds of live broilers marketed per 100 pounds ~. ilding accessories as calculated for Table 2, j- a synthetic curtain for each side of the a; It was estimated that these would have eplaced every 5 years. f r rows of mechanical feed troughs, provid- ut 2 inches of feeder space per bird, were }. ly used for 12,000-bird capacity houses. This Dent was expected to last 15 years and could illed for $1,500 per house in 1962. i Troughs and Water Systems uses of the size being considered were usually y. with 40 automatic waterers per house. inch of trough space was provided per ,In addition, 60 to 80 water jugs were re- __ At 1962 prices, the new cost of such equip- pproximated $300 per house of this size. vestment would likely be replaced every 5 growers had a separate well in order to lple water for broilers. The cost of the water iwas not uniform from farm to farm but tended with the depth to water. The investment , water systems shown in Table 2 approximates A‘; ge cost reported by cooperators with similar- ‘perations. Growers with a relatively large Rise reported less investment per house than ‘ith only one house. Depreciation for the _ e water storage and pipe was calculated xpected life of 20 years. BIS g . elve brooders of 1,000-bird capacity each were '1 for the 12,000 chicks in each house. In few instances was an extra brooder kept for case of emergency. Growers reported that it of a new brooder ranged from $47.50 up- It was estimated that equipment of this had a useful life of 15 years. Tanks ally the broiler grower furnished storage for fa used. This was normally a metal tank costing about $500 per house. When butane was used for brooding, it was sometimes necessary for the grower to provide butane storage. This would be a cost over and above the amount shown in Table 2. For the typical 12,000-bird broiler units con- structed in 1962, the land, a new house and other new facilities required an investment of $7,600. The investment increased almost proportionately with each unit added to the enterprise. OWNERSHIP AND UPKEEP COSTS— BROILER FACILITIES The costs incurred by a typical Shelby County broiler grower are shown in Table 3. The summary is for one unit with a 12,000-bird capacity. When the grower and /or his family did all the work of raising contract broilers, the items associated with owning and maintaining the houses and equip- ment made up approximately two-thirds of the grower’s cost. These items included depreciation, upkeep and repairs, interest on the investment and taxes. Depreciation Annual depreciation of buildings and equip- ment amounted to 4 cents per bird capacity. When 4 batches of birds were raised annually, the depreci- ation cost for all facilities was l cent per broiler. When 5 batches were raised yearly, this cost was re- duced to 0.8 cents per bird. Total annual deprecia- tion was considered to be the same regardless of the extent of use. The estimated annual depreciation for a 12,000- bird capacity unit was $485 and was the largest item of cost in Table 3. This cost must be met over time if the grower is to keep his capital intact. Upkeep and Repairs The repair cost for a new broiler house and equipment was relatively low but increased with age. Producer experience over a period of years indicated that the repairs and upkeep for a broiler enterprise will average 0.5 percent of the new cost of buildings and other equipment for each batch .2. TYPICAL FACILITIES USED IN BROILER PRODUCTION AND ANNUAL CHARGES FOR USE, 1961-62 12,000-bird capacity unit-l house 48,000-bird capacity unit—4 houses Investment . Investment . . I ' Cost, ESUIIIEQIGO Depreclatlon nlterestl Cost, Estimated Ikpreciation Intereslt mrw 1 € C Hrgfi new life charge Dollars Years Dollars Dollars Dollars Years Dollars Dollars 100 6 300 a 18 louse (252’x40’) 4000 20 200 120 16,000 20 800 480 accessories 200 5 40 6 800 5 160 24 y feeders v 1500 15 100 45 6,000 l5 400 180 - ughs l‘ 300 5 60 9 1,200 5 240 36 ",~; 400 20 20 12 1,000 20 50 30 p 600 15 40 18 2,400 15 160 72 k 500 20 25 15 2,000 20 100 60 ’ 7600 485 231 29,700 1910 900 ,0n land at 6 percent; all other interest at 6 percent of the average depreciated value which was half the new cost. TABLE 3. COST I-TEMS FURNISHED ANNUALLY BY THE GROIVER FOR BROILERS RAISED ON CON- TRACT, 1961-62 12,000-bird capacity unit 41/2 batches of broilers Grower's expense items Unit Amount Cost Cash costs Heat for brooding $225. Electricity for lighting 135. Labor, regular care Hour 756. 1 Labor, catching birds House 4.5 144. Haul out manure i House 2 Overhead costs Depreciation 485. Upkeep and repairs 171.3 Interest 231. Taxes House l7.‘ Total grower’s cost $1,408. ‘Labor furnished by grower and/or his family at rate of 14 hours per 1,000 broilers. 2N0 cost calculated. It was a common practice for someone to clean the house for the manure. “Calculated at 0.5 percent of new cost of buildings and facilities for each batch of broilers. ‘Calculated on basis of information supplied by Shelby County tax collector. of broilers raised. This item amounted to about 0.3 cents for each broiler produced. Interest For this study, interest on land was figured at 6 percent annually. Interest on the broiler house and all other facilities was calculated at 6 percent of half the new cost. Interest on investment capital was a cash cost for money that was borrowed. For the grower who invested only his own money in the broiler business, interest was an item of overhead cost. Interest on the grower’s investment averaged nearly 0.5 cent per broiler raised. Taxes The county tax assessor furnished information concerning taxes. In 1962 the tax rate for Shelby County was $2.451 per $100 valuation. Buildings and equipment for a 12,000-bird capacity broiler en- terprise was valued at about $700 for tax purposes. OTHER COSTS OF THE BROILER . GROWER In addition to the broiler-raising facilities, the grower provided heat for brooding, electricity used in the houses and all labor for growing and for load- ing out birds at market time. Also, the grower was responsible for cleaning out and disposing of the manure that accumulated. Heat for Brooding Heat was used with chicks put down during the late fall, winter and early spring. This usually in- volved approximately half the broilers raised. No heat was provide-d for chicks going into the houses during warm Weather. Natural gas, butane and 6 electricity were the sources of heat used by di i‘ growers. The average brooding cost for a l bird capacity house was $225 annually, Table 3. Electricity for Lighting All houses were equipped with electric The cost incurred by producers for electric c _v averaged $30 per batch of 12,000 birds. Labor-Regular Care 7"» On the average, 168 hours of labor wer to care for 12,000 broilers from the time the went in the house until they were ready to r? In calculating the costs shown in Tables 3 it was assumed that the grower and his fam- nished all of the labor for an enterprise of t Consequently, labor was not included as a cas Several instances were observed where 0' time man was caring for four broiler houses ea a capacity of 12,000 birds. This work was donel by the grower or was hired. In 1962 it was u’ to hire labor that was closely supervised for 7 an hour. However, a hired worker capable. of 1 for a broiler enterprise with little or no supi could seldom be hired for less than $1 an hour._'; was the price used in calculating the cost of i, labor for the four-house enterprise for whi ' maries are shown in Table 5. 3 Lab0r—Catching Birds It was customary for the grower to pay who caught the birds at market time. ¢'__ a contract job with the cost based on the vi of the house from which broilers were The 1962 rate for catching and loading bro'» a 12,000-bird capacity house was $32. Cleaning Out Manure Manure is a by-product of the broiler en“ and is useful for crop or improved pasture prod_ It was a common practice to clean the man of broiler houses after 2 batches of birds. the cooperating broiler growers did not , manure that accumulated. Instead, arran were made to give the manure to someone wh, clean out the houses and haul the manu fl. Here the benefits of the manure were exch C the cost of cleaning out, hauling and dist-f the manure. Because of the frequency of t ' tice, no cost was calculated for this item as s Tables 3, 4 and 5. '2 f A grower who hired no labor, had for 12,000 birds and owned these faciliti free, incurred cash expenses of $692 in rais batches of broilers annually, Table 3. This .|, to approximately 1.3 cents per broiler i. Noncash costs increased this total to $1,408 v or 2.7 cents per bird marketed. cosrs AND RETURNS—CONT BROILER PRODUCTION a A summary of the typical production, production costs and the income associated wi i ANNUAL PRODUCTION, GROWER’S PRODUC- A TION COSTS AND INCOME ASSOCIATED i WITH GROWING BROILERS ON CONTRACT, PART-TIME ENTERPRISE One-house enterprise—l2,000-bird capacity Producing annually 4 batches 41/2 batches 5 batches Number Number Number uction Y annually 46,744 52,587 58,430 A r bird funds‘ 3.42 3.42 3.42 unds gight sold 159,364 179,348 199,331 ‘As ss income, lying - - - - - - - Dollars - - - - - - - bird 2,805 3,155 3,506 4 r bird 2,337 2,629 2,922 :- bird 1,370 2,103 2,337 ‘rpound ight 3,197 3,597 3,997 per pound _ight 2,798 3,147 3,497 I per pound ight 2,398 2,698 2,997 f‘ pense, operating ' brooding 200 225 250 ' for lights 120 135 150 3- *; lar care’ itching birds 12s 144 100 t manure“ i‘ of facilities tion 485 485 485 , and repairs‘ 152 171 190 -- 231 231 231 17 17 17 to grower 1,333 1,403 1,433 s- per bird sold .029 .027 .025 Return Return Return Total per Total per Total per annual hour annual hour annual hour , returns labor2 return5 labor2 return5 labor2 _ come, ‘aying — — — — — — — Dollars — — — — — — — lrbird 1,472 2.19 1,747 2.31 2,023 2.41 ‘fr bird 1,004 1.49 1,221 1.62 1,439 1.71 bird 537 .80 695 .92 854 1.02 ~ pound eight 1,864 2.77 2,189 2.90 2,514 2.99 " per pound eight 1,465 2.18 1,739 2.30 2,014 2.40 per pound eight 1,065 1.58 1,290 1.71 1,514 1.80 ‘eight reported by cooperating growers. y ished by grower and/or his family. calculated; assume houses are cleaned out for the ' at half percent of new cost of buildings and facilities batch of broilersf; i z» grower’s labor and management. ‘rs under contract is shown in Tables 4 and i for a one-house, part-time operation are in Table 4 and for a four-house, full-time are given in Table 5. Also, data are shown for management systems by which 4, 4% and 5 batches of broilers were raised annually. Cooperating growers who were compensated ac- cording to the number of broilers raised, received payments at the rate of 4, 5 or 6 cents per bird. Other cooperators had contracts that called for pay- ments to the grower of 11A,, 1% or 2 cents per pound of live weight marketed. Growers gross returns and labor-management returns have been estimated, using each of the above rates of compensation for contract broilers. The average mortality rate (2.62 percent of the birds purchased) reported by cooperating produc- ers was used in calculating the number of broilers sold. The same rate was applied to both systems of production and to both the part-time and the full- time enterprise. Also, the weights of broilers sold in each situation were calculated at 3.42 pounds per bird as reported by producers. Expense items previously discussed were the basis for calculating the grower’s cost for each of the six production situations summarized in Tables 4 and 5. Part-time Broiler Enterprise A broiler house having about 10,000 square feet of floor sp-ace and having capacity for 12,000 birds is typical of the trend in size of facilities among part- time broiler growers. Annual gross receipts from such an enterprise varied from $1,870, when four batches of broilers were raised for 4 cents per bird, to $4,000, when five batches were grown for 2 cents per pound, Table 4. In each instance, gross in- come was increased proportionately by growing 5 rather than 4 batches. When there was no charge for labor, the grower’s costs ranged from an average of 2.5 cents per bird for a 5-batch enterprise to 2.9 cents per bird when only 4 batches were grown. The grower’s labor-management return as shown in Table 4 was the amount received annually by the grower after all operating costs were paid and deductions made for depreciation and interest. The part-time operator put in an average of 2 hours and 20 minutes per day for the 9 weeks required for rais- ing a batch of 12,000 broilers. It was calculated that when 2 cents were paid per pound of live weight marketed, the grower who had no labor expense and raised 5 batches of 12,000 birds each received a labor-management return of $2,500. This amounted to $3 per hour of time p-ut in by the grower and / or his family. When only 4 rather than 5 batches were grown at 2 cents per pound, the annual return to labor- management was reduced 26 percent and the return per hour of labor was reduced by 22 cents. All the contract rates considered in Table 4, offered a part-time grower an opportunity to in- crease family earnings. Of the part-time situations considered, the one that was the least profitable to the grower involved 4 batches of broilers grown for 4 cents per bird. For birds averaging 3.42 pounds, contract payment of 4 cents per bird was equal to a payment of 1.17 cents TABLE 5. ANNUAL PRODUCTION, GROWER’S PRODUC- TION COSTS AND INCOME ASSOCIATED WITH GROWING BROILERS ON CONTRACT, FULL-TIME ENTERPRISE Four-house enterprise, 48,000-bird capacity Producing annually Iten1s 4 batches 4%, batches 5 batches -—-—-—Number————— Broiler production Birds sold annually 186,976 210,348 233,720 Weight per bird sold, pounds‘ 3.42 3-42 3-42 Total pounds live weight sold 639,458 719,390 799,322 --——— Dollars ————— Contract paying grower’s gross income 6 cents per bird 11,219 12,521 14,023 5 cents per bird 9,349 10,517 11,535 4 cents per bird 7,479 8,414 9,349 2 cents per pound live weight 12,789 14,388 15,986 13/, cents per pound live weight 11,191 12,589 13,988 11/2 cents per pound live weight 9,592 10,791 11,990 Grower’s expense, operating Heat for brooding 800 900 1,000 Electricity for lights 480 540 600 Labor, regular care 2,688 3,024 3,360 Labor, catching birds 512 576 640 Haul out manure’ Ownership of facilities Depreciation 1,910 1,910 1,910 Upkeep and repairs” 608 684 760 Interest 900 900 900 Taxes 68 68 68 Total cost to grower 7,966 8,602 9,238 Grower’s cost per bird sold .043 .041 .040 Total Total Total annual annual annual returns’ returns‘ returns’ Grower’s income, contract paying: 6 cents per bird 3,253 4,019 4,785 5 cents per bird 1,383 - 1,915 2,448 4 cents per bird _487 —l88 ——ll 2 cents per pound live weight 4,823 5,786 6,748 1% cents per pound live weight 3,225 3,987 4,750 11/2 cents per pound live weight 1,626 2,189 2,752 ‘Average weight reported by cooperating growers. 2N0 cost calculated; assume houses are cleaned out for the IIIZIHUTC. aCalculated at half percent of new cost of buildings and facilities for each batch of broilers. ‘Returns to grower’s labor and management. 8 per pound of live weight marketed. With th' » rangement, it was estimated that the grower rec only 80 cents an hour for his time after prov' were made for all costs. With this type of contract, growing 5 y than 4 batches of broilers annually increased earnings nearly 60 percent and increased the re per hour of labor by 22 cents. _ The grower who invests’: money in facilities, raising broilers incurs certain annual overhead such as depreciation, interest and taxes, reg y of how much the equipment is used. Consequ the part-time grower may gain by keeping A facilities busy as long as he is compensated f‘ costs and receives a return for labor that is ac able to him. i Full-time Broiler Enterprise A four-house, 48,000-bird capacity enterp " typical of the recently established, large-ca broiler units in East Texas. Many growers in category hire all of the labor used. The labor for regular care were based on average requirel reported by producers, Table 5. As calculated, _ labor costs were proportionate to the number of , raised. However, some growers hired year-r p help for a weekly or monthly wage. When this I done, labor was a fixed expense and the cost per, _ sold was substantially less when 5 rather or 41/2 batches were raised annually. 8' With labor costs at $1 per hour, the gro total expense per bird sold averaged 4.3 cents 4 cents, respectively, with the production of 4 ; 5 batches of birds annually. p Thus, the average grower who received 4 t per bird sold or its equivalent, had to grow 5 ba 1 of broilers annually to recover all cash expenses to make depreciation and interest on the invest in facilities. Many of the recent contract agreements to about 1% cents per pound live weight sold. this rate, it was calculated that a grower who , facilities for 48,000 birds per batch and who r care of the birds himself had a labor-managemen , turn of from $5,900 to $8,100 depending on whe” 4 or 5 batches were raised annually. Growing 5 rather than 4 batches per year f substantially to the efficiency with which broilers; raised under contract. However, the seasonal vol needed on the market may largely determine the it ber of batches raised during any particular year; When all labor was hired, the return toi grower over and above interest and depreciation $3,225 from 4 batches, Table 5. Increasing l, 4 to 5 batches per year increased earnings by 5 47 percent. f A large part of the grower’s costs for b t" raised under contract are fixed costs. Consequej one effective way to reduce costs per bird was to the broiler facilities at full capacity. i