Group Title: Circular ;
Title: Increased efficiency
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00102069/00001
 Material Information
Title: Increased efficiency what's it worth?
Series Title: Circular ;
Physical Description: 1 folded sheet (10 panels) : ill. ; 23 cm.
Language: English
Creator: Lester, Bernard
University of Florida -- Agricultural Extension Service
Publisher: University of Florida, Agricultural Extension Service
Place of Publication: Gainesville, Fla
Gainesville, Fla
Publication Date: 1962
Copyright Date: 1962
 Subjects
Subject: Poultry -- Economic aspects -- Florida   ( lcsh )
Egg trade -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Statement of Responsibility: Bernard Lester.
General Note: Cover title.
General Note: "January 1962"--Panel 2
 Record Information
Bibliographic ID: UF00102069
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 233184725

Full Text



Increased

Efficiency-


What's


SBernard
Circular


It Worth ?


Lester
223


University of Florida
AGRICULTURAL EXTENSION SERVICE
Gainesville, Florida







Increased Efficiency -

What's it Worth?

BERNARD LESTER
Research Assistant, Poultry Husbandry

Increased efficiency normally provides benefits
to your layer operation. But how much is effi-
ciency worth in dollars and cents ? What relation-
ship exists between your efficiency factors, your
production costs and your returns from the sale
of eggs?
Consider the following example. You are pres-
ently receiving a price per dozen that allows you
to meet your production expenses evenly. The
feed company increases the price of feed by $2.00
per ton. To compensate for your increased ex-
penses, how much more must you now receive per
dozen for your eggs? Is one-half cent more per
dozen sufficient? How much increase in produc-
tion per layer is necessary? Will a production in-
crease of three eggs per layer per year be ade-
quate? How much must your feed efficiency per
dozen be improved? Is a reduction of one-tenth
pound of feed per dozen satisfactory? How much
must you attempt to reduce expenses other than
feed? Is three cents per layer a sufficient reduc-
tion? What combination of all these alternatives
will financially compensate for the increase in feed
cost?




January 1962




COOPERATIVE EXTENSION WORK IN AGRICULTURE
AND HOME ECONOMICS
(Acts of May 8 and June 30, 1914)
Agricultural Extension Service, University of Florida, Florida State
University and United States Department of Agriculture, Cooperating
M. O. Watkins, Director






The Graphs Below Will Provide Answers to Sample Questions Listed in This Circular, Plus Other Questions You May Have on Efficiency.


FEED EFFICIENCY


DOZ. /
LAYER


TOTAL
FEED


2.60


TOTAL FEED COST


FEED
COST
/CWT.


TOTAL
FEED
COST
4.10-


4.70


2.60


TOTAL COST


PRICE OF LARGE EGGS
TO MEET COST


% FEED
IS OF
TOTAL


5.20


USE THESE GRAPHS TO FIND ANSWERS TO SPECIFIC QUESTIONS ILLUSTRATED IN THE EXAMPLES THAT FOLLOW .


FEED
CONS.


DOZ. /
LAYER






* FEED EFFICIENCY GRAPH-No. I

Question.-If rate of production per layer is
20 dozen, and feed consumption per layer is 90
pounds, what is the feed efficiency?
Answer.-Place straight edge on 90 pounds
consumption and 20 dozen production. Read feed
efficiency answer of 4.5 pounds of feed per dozen
eggs.

Question.-If feed consumption cannot be re-
duced below 90 pounds, how much must produc-
tion per layer be increased to improve feed effi-
ciency by two-tenths pound?
Answer.-Place straight edge on 90 pounds
feed consumption, move efficiency from 4.5 to 4.3
and read production of approximately 21 dozen.
(To determine amount that feed consumption
must be reduced if production remains constant
at 20 dozen, place straight edge on 20 dozen pro-
duction, move feed efficiency from 4.5 to 4.3 and
read feed consumption of 86 pounds, a reduction
of 4 pounds.)

Question.-If production improves 6 eggs and
feed consumption increases one pound, is feed effi-
ciency better now or was it better before?
Answer.-At 20 dozen production and 90
pounds consumption, feed efficiency is 4.5. Move
production to 20.5 and feed consumption to 91
pounds. Read feed efficiency of 4.45 pounds of
feed per dozen eggs.

* TOTAL FEED COST GRAPH-No. II

Question.-If feed consumption is 90 pounds
and feed is priced at $3.50 per hundredweight,
what is total feed cost?

Answer.-Place straight edge on 90 pounds
consumption and $3.50 per hundredweight price.
Read total feed cost of $3.15.

Question.-If feed price increases to $3.55 per
hundredweight, how much must feed consumption
be reduced to maintain a total feed cost of $3.15?






Answer.-Place straight edge on $3.15 total
feed cost. Move price to $3.55 per hundredweight.
Read feed consumption of slightly less than 89
pounds.


* TOTAL COST GRAPH-No. III

Question.-If costs other than feed are $3.07,
what percent is feed of total cost?
Answer.-The $3.15 total feed cost added to
the $3.07 equals total costs of $6.22. Place
straight edge on $3.15 total feed cost and $6.22
total costs. Read percent feed is of total cost of
50.5 percent.

Question.-If the percent feed is of total cost
increases by 1.5 percent without changing actual
feed cost, how much savings will be realized per
layer ?
Answer.-Place straight edge on $3.15 total
feed cost and move percent feed is of total cost
from 50.5 to 52. Read total cost of $6.05. This is
a 17 cents per layer savings ($6.22 $6.05).


PRICE OF LARGE EGGS TO MEET
COSTS-No. IV

This graph is based on two constants, the per-
centage of each egg size that can be expected
from a layer, and the price difference between
these sizes. The egg size range was determined
from complete records of one of Florida's egg co-
operatives, and these records compared with those
of the Seventh and Eighth tests of the Florida
Random Sample Test. According to these rec-
ords, you can expect from a year's production 57.3
percent extra large and large; 23.5 percent me-
diums; 8.1 percent small; 9.6 percent pee wees,
cracks, thins and B's; and 1.5 percent blood spots.
Remember this is for the complete laying year,
not just when the birds are mature.
The price range is based on the Jacksonville
market price quotations obtained from the Florida
State Marketing Bureau. Records for the nine-
year period 1951-59 have shown 6 cents difference






between large and medium, 8 cents between me-
dium and small, and an estimated 5 cents between
small and pee wees, cracks, thins and B's. No
price is allowed for blood spots.

Question.-If total costs are $6.22 and rate
of production is 20 dozen, how much must be re-
ceived for large eggs to meet expenses?
Answer.-Place straight edge on 20 dozen pro-
duction and $6.22 total costs. Read price to re-
ceive for large eggs of 36 cents per dozen.
The table below indicates how the percent of
each egg size and price differences are used in this
graph.


Total
Sizes Percent Dozen $/Dozen Received

Large ........ 57.3 11.46 $.36 $4.12
Medium ... 23.5 4.70 .30 1.41
Small ....... 8.1 1.62 .22 .36
Misc. ........ 9.6 1.92 .17 .33
Bloods ...... 1.5 .30 -

100.0 20.00 $6.22



USING COMBINATIONS OF GRAPHS
Assume feed price increases 5 cents per hun-
dredweight. If it is impossible in this particular
instance to improve production or the price you
are receiving for eggs, it may be possible to im-
prove feed efficiency and reduce expenses other
than feed. Total costs in this example are $6.22.
Using the feed cost graph you realize that an in-
creased feed price from $3.50 per hundredweight
to $3.55 per hundredweight will increase total feed
cost to $3.20. This $3.20 feed cost added to the
other expenses of $3.07 increases your total costs
to $6.27. To determine how much a five-hun-
dredths pound feed efficiency improvement is
worth, hold straight edge on 20 dozen production
and improve feed efficiency from 4.50 to 4.45.
This reduces feed consumption to 89 pounds. Take






the feed cost graph. Place price per hundred
weight on $3.55 and feed consumption on 89
pounds. Your feed cost is now $3.16. This added
to your other costs of $3.07 gives a $6.23 total
cost. Thus you will need to reduce other expenses
by just one cent per layer. This combination of
a five-hundredths pound feed efficiency improve-
ment and a reduction of expenses other than feed
of one cent per layer will compensate for a 5 cents
per hundredweight increase in feed price.
This of course is only one combination for
meeting the increased expenses. There are many
combinations which would suffice. It is just a
matter of where improvements can be made for
an individual operation.
The preceding example should emphasize the
financial advantage of a small improvement. With-
out records you are unable to realize these ben-
efits.


KEEP RECORDS

AND

KNOW YOUR COSTS




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