• TABLE OF CONTENTS
HIDE
 Front Matter
 Foreword
 Table of Contents
 List of Tables
 Introduction
 Results of study
 Summary
 Summary














Group Title: Ag.econ.report / Florida agricultural experiment stations. Department of agricultural economics. University of Florida ;
Title: Growers income, production cost and net returns in producing and marketing broilers under contract, Live Oak, Florida broiler producing area, 1970-1971 /
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 Material Information
Title: Growers income, production cost and net returns in producing and marketing broilers under contract, Live Oak, Florida broiler producing area, 1970-1971 /
Series Title: Ag.econ.report / Florida agricultural experiment stations. Department of agricultural economics. University of Florida ;
Physical Description: 49 p. : ; .. cm.
Language: English
Creator: Greene, R.E.L
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Place of Publication: Gainesville
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Publication Date: 1972
Copyright Date: 1972
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Statement of Responsibility: by R.E.L. Greene.
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Table of Contents
    Front Matter
        Front matter
    Foreword
        Page i
    Table of Contents
        Page ii
        Page iii
    List of Tables
        Page iv
        Page v
        Page vi
        Page vii
    Introduction
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Results of study
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
    Summary
        Page 35
        Page 36
        Page 37
        Page 38
    Summary
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
Full Text
' J. September 1972
,. 39


Growers Income, Production Cost
and Net Returns in Producing and
Marketing Broilers Under Contract,


Live Oak,


Florida
Area,


Broiler Producing
1970-71


Department of Agricultural Economics
Florida Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
University of Florida, Gainesville


R. E. L. Greene


Ag. Econ. Report 38











FOREWORD


The writer wishes to express his appreciation to the
farmers surveyed for their excellent cooperation. Appreci-
ation is also due the managers of firms contracting with
farmers who grow broilers for supplying a list of their growers
for sampling purposes and also furnishing copies of settle-
ment sheets when these were unavailable from growers surveyed.
Appreciation is due faculty members of the University of
Florida Extension Service for help in making contact with
broiler contractors and also for assistance in checking and
locating sample farms on county maps.
In this study records were obtained from 48 broiler
growers. However, the growers surveyed grew broilers for only
two of the three broiler contractors in the Live Oak area.
Therefore, the data collected DO NOT necessarily represent the
AVERAGE for the Live Oak area. They also do not represent the
average of the most efficient growers in the area. However, it
is felt that the data presented do give a representative picture
of the average farm for the growers surveyed.
The average age of growers from which records were taken
was 47.6 years but 6 growers were 60 years old or older. The
average grower had 9.7 years of schooling but half had 10 or
more years,of schooling with 5 having some college training.
The average broiler grower had been growing broilers 4.70 years
of which 3.72 years were with their present contractor.
The farms for which data were obtained were statistically
selected to include both small and large broiler growers and
also to distribute them systematically over the Live Oak area.















TABLE OF CONTENTS


Page

FOREWORD . . . . . . . . . . . .. i

TABLE OF CONTENTS . . . . . . . .... ..... ii

LIST.OF TABLES . . . . . . . . ... . . iv

APPENDIX TABLES . . . . . . . . ... . . .vii

INTRODUCTION . . . . . . . . ... ... .1

Trend in Broiler Production and Income in Florida ... 1

Purpose of Study . . . . . . . . ... . 1

Method of Study . . . . . . . . .. . . 3

Classes of costs . . . . . . . .. .. 5

RESULTS OF STUDY . . . . . . . . .. . . 7

Characteristics of Growers. . . . . . . .. 7

Amount of Capital Invested in the Broiler Enterprise . 9


Cost new for brooder houses and brooder house equipment
Average capital investment in the broiler enterprise

Characteristics of Broilers Produced . . . . .

Variation of selected factors by quarters of the year
Use of labor . . . . . . . . . . .

Growers Income, Production Costs and Returns . . .

Small grower operations . . . . . . . .
Large grower operations . . . . . . . .
Average all farms . . . . . . . . . .

Crop and Livestock Enterprises Other than Broilers . .

Income from Off-farm Employment . . . . . . .

ii


9
9

12

14
S 17

21

S 21
26
S 28

32

34










TABLE OF CONTENTS--Continued


Page

35

39


SUMMARY . . . . . . . . . . . . .

APPENDIX . . . . . . . . . . . . .













LIST OF TABLES


Page

TABLE

1 Broiler production in Florida: Number, weight, price
per pound, gross income and indexes of trends in num-
bers and gross income, average by 5-year periods,
1945-49 to 1960-64 and annual 1965 to 1970 . . . 2

.2 Variation in chick capacity--all houses on June 30,
1971 by size of grower, Live Oak, Florida broiler
producing area . . . . . . . . . . 3

3 Number of broiler growers in sample, number and percent
of growers for which data were obtained and group
weights by total chick capacity--all houses on June 30,
1971, Live Oak, Florida broiler producing area . .. 4

4 Number of farms for which records were obtained by
counties and size of grower operation, Live Oak,
Florida broiler producing area, 1971 . . . . 4

5 Characteristics of growers studied producing broilers
under contract, by size of grower operation, Live Oak,
Florida.broiler producing area, June 30, 1971 . . 8

6 Number of houses, cost new for house and equipment,
present age, expected life and current value, by size
of grower operation, Live Oak, Florida broiler produc-
ing area, July 1, 1970 to June 30, 1971 . . . .. 10

7 Investment in land used for broiler production, broiler
houses, broiler house equipment and auxiliary equip-
ment, by size of grower operation, Live Oak, Florida.
broiler producing area, July 1, 1970 to June 30, 1971 11

8 Characteristics of broilers produced under contract, by
size of grower operation, Live Oak, Florida broiler
producing area, July 1, 1970 to June 30, 1971 .. . 13

9 Comparison of selected factors by quarters of the year,
twenty-five small farms, Live Oak, Florida. broiler pro-
ducing area, July 1, 1970 to June 30, 1971 . . .. 15








LIST OF TABLES--Continued


Page

TABLE

10 Comparison of selected factors by quarters of the year,
twenty-three large farms, Live Oak, Florida broiler
producing area, July 1, 1970 to June 30, 1971 .... 16

11 Labor used in producing broilers under contract, by
size of grower operation, Live Oak, Florida broiler
producing area, July 1, 1970 to June 30, 1971 .... 18

12 Variation in hours of labor used per 1,000 chicks
started in producing broilers under contract, 25 small
grower operations, Live Oak, Florida broiler producing
area, July 1, 1970 to June 30, 1971 . . . ... 19

13 Variation in hours of labor used per 1,000 chicks
started in producing broilers under contract, 23 large
grower operations, Live Oak, Florida. broiler producing
area, July 1, 1970 to June 30, 1971 . . . ... 20

14 Relation of labor used per 1,000 chicks started to
selected factors, 25 small and 23 large grower opera-
tions, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971 . . . . . .. 21

15 Grower income, production costs and returns, small
grower operations, Live Oak, Florida broiler producing
area, July 1, 1970 to June 30, 1971 . . . ... 22

16 Variation in growers income, production costs and
returns on low third and high third cost per broiler
farms, small grower operations, Live Oak, Florida
broiler producing area, July 1, 1970 to June 30, 1971 24

17 Grower income, production costs and returns, large
grower operations, Live Oak, Florida broiler producing
area, July 1, 1970 to June 30, 1971 . . . ... 27

18 Variation in growers income, production costs and
returns on low third and high third cost per broiler
farms, large grower operations, Live Oak, Florida
broiler producing area., July 1, 1970 to June 30, 1971 29

19 Grower income, production costs and returns, average
all farms, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971 . . . . . .. 31










LIST OF TABLES--Continued


Page
TABLE

20 Crop and livestock enterprises on farms other than
broilers, by size of grower operation, Live Oak,
Florida broiler producing area, July 1, 1970 to
June 30, 1971 . . . . . . . ... .. . 33

21 Income from off-farm employment of farm operators
and/or spouses, by size of grower operation, Live Oak,
Florida broiler producing area, July 1, 1970 to
June 30, 1971 . . . . . . . ... .. . 35








APPENDIX TABLES


Page
TABLE

1 Age and education of broiler growers, by size of
grower operation, Live Oak, Florida broiler producing
area, June 30, 1971 . . . . . . . . .. 40

2 Acres operated, by size of grower operation, Live Oak,
Florida broiler producing area, June 30, 1971 .... 41

3 Broiler house capacity, by size of grower operation,
Live Oak, Florida broiler producing area, June 30, 1971 41

4 Percent of chickens started that died, by size of
grower operation, Live Oak, Florida. broiler producing
area, July 1, 1970 to June 30, 1971 . . . ... 42

5 Percent of chickens started that were condemned, by
size of grower operation, Live Oak, Florida. broiler
producing area, July 1, 1970 to June 30, 1971 ..... 43

6 Average liveweight of broilers sold, by size of grower
operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971 . . . . .... 44

7 Average age of broilers when sold, by size of grower
operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971 . . . . . ... 45

8 Average feed conversion ratios, by size of grower
operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971 . . . . . ... 46

9 Contract payment per pound of live broiler, per brood
basis, by size of grower operation, Live Oak, Florida.
broiler producing area, July 1, 1970 to June 30, 1971 47

10 Variation in hours of labor used per 1,000 chicks
started in producing broilers under contract, 25 small
grower operations, Live Oak, Florida. broiler producing
area, July 1, 1970 to June 30, 1971 . . . ... 48

11 Variation in hours of labor used per 1,000 chicks
started in producing broilers under contract, 23 large
grower operations, Live Oak, Florida broiler producing
area, July 1, 1970 to June 30, 1971 . . . ... 49









GROWERS INCOME, PRODUCTION COST AND NET RETURNS
IN PRODUCING AND MARKETING BROILERS UNDER CONTRACT,
LIVE OAK, FLORIDA BROILER PRODUCING AREA, 1970-71


R. E. L. Greene


INTRODUCTION


Most broilers grown in Florida are produced and marketed under
contract between the "grower" (poultry farmer) and "contractor" (usually
a poultry integrator) whereby each partly bears a specific part of the
costs and risks in production. Normally the Florida contractor furnishes
the chicks, feed and medicines and some form of supervision. The grower
usually supplies the land, housing, equipment, labor, litter, electricity,
water, fuel and some management. The contractors pick up, haul and pro-
cess the birds for market and sell them to distributors, chain stores and
retail outlets. The farmer is paid on a per pound basis for raising the
broilers.


Trend in Broiler Production and Income in Florida

The number of broilers produced in Florida has increased very
rapidly during the last six years. In 1965, there were 12,855,000 broilers
produced in the state but this number was 46,695,000 in 1970, or an in-
crease of 263 percent (Table 1).
.Contrary to the increase in numbers, since the early nineteen fifties
the price per pound for broilers has declined more than 50 percent. This
means that the value of broilers produced has increased much less than the
number produced. With 1945-49=100, the index of production in 1970 was
696 while the index of value was only 319.
The large increase in broiler production in the state in the last
few years has been mainly in the Live Oak area, particularly in Lafayette
and Suwannee counties.


Purpose of Study

The payment per bird received by the grower and other contract terms
and conditions are determined by bargaining or consultation between



R. E. L. Greene is professor of food and resource economics.









Table l.--Broiler production in Florida: Number, weight, price per pound,
gross income and indexes of trends in numbers and gross income,
average by 5-year periods, 1945-49 to 1960-64 and annual 1965
to 1970


1945-49
1950-54
1955-59
1960-64


1965
1966
1967
1968
1969

1970


1,000 1,000
Thousand Pounds Cents Dollars
6,713 100 17,772 38.2 6,792
10,021 149 28,862 28.4 8,205
10,767 160 32,974 19.9 6,549
10,996 164 35,410 14.6 5,156


12,855
18,640
25,164
35,481
38,737

46,695


191
278
375
528
577

696


43,707
59,648
83,041
124,184
135,580

168,102


14.5
14.8
12.7
13.4
14.1

12.9


6,338
8,828
10,546
16,641
19,117

21,685


100
121
96
76

93
130
155
245
281

319


Source: Adapted from Florida Agricultural Statistics--Poultry and Egg
Summary 1970. Florida Crop and Livestock Reporting Service,
Orlando, Florida.



grower and contractor. It is believed that the orderly development of the
broiler industry in the state could be improved if both contractors and
growers were better informed concerning some of the factors affecting the
cost of producing broilers on contract. Better and more complete infor-
mation is needed concerning all production costs, particularly at the
grower level.
The major purposes of this study are:
1. To provide a descriptive analysis of contract broiler production
in the Live Oak area including technology and production factors
utilized.
2. To determine growers' receipts, costs and net returns from pro-
ducing broilers on contract, by size of production units.









Method of Study

There are three broiler contractors in the Live Oak area. To aid in
selecting a sample for this study, two of the contractors provided a list
of their growers showing counties in which located and total chick
capacity of all houses per grower as of June 30, 1971. These two con-
tractors had 170 growers with a chick capacity per grower that ranged
from 6,500 to 73,200 (Table 2).


Table 2.--Variation in chick capacity--all houses on June 30, 1971 by
size of grower, Live Oak, Florida broiler producing area


Small farms Large farms

Chick capacity-- Growers Chick capacity--
all houses all houses
Number Number Number Number

0 to 6,500 1 26,001 to 32,500 4
6,501 to 13,000 6 32,501 to 39,000 24
13,001 to 19,500 -- 39,001 to 45,500 1
19,501 to 26,000 93 45,501 to 52,000 35
52,001 to 58,500 2
58,501 to 65,000 3
65,001 to 71,500
71,501 or more 1
Total 100 Total 70


aRange in size--small growers

Range in size--large growers


6,500 to 24,400 chick capacity.

30,900 to 73,200 chick capacity.


Using the data on total chick capacity per grower, a sample of farms
to be surveyed was randomly selected to represent growers in two size
groups--small, 26,000 or less chick capacity and large, 26,001 or more
chick capacity. The small size group normally represented farmers with
two broiler houses and the large size group represented farmers with three
or more broiler houses. The largest grower had six broiler houses.



One contractor declined to furnish a list of his growers but did
furnish settlement sheet information for each grower for the period
covered in the study.









Table 3 shows the number of records obtained in each size group and
the proportion the farms surveyed were of all farms in the group. Records
were obtained for 48 grower operations--25 small and 23 large. The coun-
ties in which the farms surveyed were located are shown in Table 4.


Table 3.--Number of broiler growers in sample, number and percent of
growers for which data were obtained and group weights by total
chick capacity--all houses on June 30, 1971, Live Oak, Florida
broiler producing area


Chick capacity-- Proportion of Group
all houses total growers weight for
June 30, 1971 surveyed summary
No. No. Percent

Small
26,000 or less 100 25 25.0 4.00

Large
26,001 or more 70 23 32.9 3.04
Total or average 170 48 28.2



Table 4.--Number of farms for which records were obtained by counties
and size of grower operation, Live Oak, Florida broiler
producing area, 1971

Size of grower operation All
Small Large farms

No. No. No.

Hamilton 1 3 4
Lafayette 9 8 17
Madison 4 3 7
Suwannee 11 8 19
Taylor -- 1 1
Total 25 23 48



The data are summarized for small farms, large farms and all farms.
Since a disproportionate sample was taken, the small and large farms were
weighted as indicated in Table 3 in calculating an average for all farms.
Information for each farm included in the study was obtained in a
personal interview with the farm operator. Since the broiler enterprise





5

was the main focus of attention in the study, data on capital investment,
income and expenses were limited to this enterprise. The data collected
covered income and expenses on broods of broilers sold during the period
July 1, 1970 to June 30, 1971. Data on number of broilers started and
sold, weight of broilers sold, broiler production efficiency and contract
payments were obtained directly from contractors' settlement sheets pro-
vided growers for each brood of broilers sold. If growers had misplaced
any of their settlement sheets, the information for such broods was ob-
tained directly from office records of the broiler contractors.
Records on expenses such as electricity, labor, litter, etc., were
obtained on an average brood basis and multiplied by the number of broods
sold to get the cost for the year. Items of costs such as spraying and
medication, fuel, insurance and taxes were the total amounts paid for the
year. To get the cost per broiler sold for each item of expense, the
totals for the year were divided by the number of broilers sold during the
year.
A broiler enterprise is often considered as a supplementary or minor
enterprise on a farm. Although records of income and expenses were not
obtained for the entire farm operation, to show something of the size and
importance of other farm enterprises, data were obtained for each farm on
kinds and acres of crops being grown in each crop during the 1970-71 crop
year. The number and kind of livestock other than broilers on the farm
on June 30, 1971 was recorded. A record was also obtained of amount and
kind of off-farm work and earnings of the operators and/or their spouses
during the study period July 1, 1970 to June 30, 1971.
Classes of costs.--A brief discussion of the general categories of
costs with which the broiler grower must deal might be useful at this
point. These are--variable costs, fixed costs and a. charge for the capital
and labor furnished by the operator and his family.
Variable costs are often referred to as operating costs. They tend
to be directly related to the amount of production and move up or down as
production increases or decreases, although not necessarily in direct
proportion. As the number of broilers grown is increased, the cost of
electricity, labor, and other variable costs also increases. Variable
cost per unit remains more or less constant.
The second category, fixed costs, does not tend to vary with output.
Examples of fixed costs are insurance, property taxes, license fees and'







lease payments. These costs will continue for a period of time regardless
of whether a grower's houses are full or empty. Therefore, it is apparent
that for a given unit, since fixed costs remain constant, the average
fixed costs per unit declines as output increases. Depreciation (or capi-
tal consumption) which is an indication of the amount of investment that
is used up in the process of production may be partially fixed and par-
tially variable.
The third category is one that is many times overlooked and also
misunderstood. When the owner calculates his returns for a given period
of time from his broiler enterprise, he might simply subtract fixed and
variable costs (not including a charge for his own capital or his own and
family labor) from total receipts. If receipts exceed his expenses as
calculated, the remainder can be termed returns to the grower for his
capital and his own and family labor, but cannot properly be considered
net profits. This is because the owner's cost of having his own money
and his own and family labor invested in the business must be subtracted
from his returns to get the true net profits for the enterprise. For
example, assume a broiler grower has $25,000 invested in his broiler
enterprise. If he is borrowing money, he would be paying interest on the
amount borrowed. If he was borrowing no money, the investment would have
an opportunity cost (investment charge for owner's capital) equal to what
he could obtain from $25,000 invested in alternative uses. Say he could
invest it in bonds and receive at least a. 7 percent return per year.
Then the cost to the owner of having his own money invested in the broiler
enterprise is at least 7 percent of $25,000 or $1,750.
Likewise, rather than the operator and his family spending their time
on the broiler enterprise, they could hire the work done and they would
have a hired labor cost. If they did not grow broilers, they might spend
their time on other enterprises. Therefore in calculating net profits of
the broiler enterprise, a charge should be made to cover costs of owner's
capital and also owner's and family labor. In calculating expenses of
producing broilers no charge was made for interest paid on money borrowed.
However, a charge of 7 percent per year was made on the average total
capital investment for the year in the broiler enterprise to cover cost of
both borrowed capital and capital furnished by the operator. The 7 percent
interest was about the average rate farmers were paying on borrowed money.
Operator and family labor was charged at $1.50 per hour.







From the above discussion, one can see that in calculating net
returns for the broiler enterprise for the year total costs must include
the sum of variable and fixed costs and a charge for the capital and labor
furnished by the operator and his family. If an operator has only a small
debt on his broiler enterprise and hires little or no hired labor, the
amount of money available for family living is the amount of money left
over after he subtracts his direct and indirect expenses from his re-
ceipts from broilers sold.
As a part of the expenses of the broiler enterprise an annual charge
was made to cover depreciation of broiler houses and broiler house
equipment. In calculating depreciation, it was assumed that the expected
life of the average house was 18.75 years and the expected life of
brooder house equipment 9.63 years. If with the annual maintenance being
given these assets, they last longer than the assumed life used in cal-
culating depreciation, the broiler producer is building up a capital gain
over the years depending on the amount that actual life exceeds expected
life. On the other hand, if houses and/or equipment have to be replaced
in a shorter period of time than the life assumed, the annual charges for
depreciation will be less than that required to replace the assets.



RESULTS OF STUDY


Characteristics of Growers

The average age of all growers studied was 47.6 years (Table 5).
Average age of small farm operators was five years more than that of
large farm operators. Six of the operators of small farms were 60 years
old or over (Appendix Table 1).
Average education attainment was 9.7 years of schooling with small
farm operators having about 1.5 years less schooling than large farm
operators (Table 5). Two of the small operators and three of the large
operators had some college training (Appendix Table 1).
Large farm operators had been in broiler production the longest
time but had been with their present contractors the least time
percentagewise. Small grower operators had been in broiler production
4.02 years and large grower operators 5.70 years. Most of the small

grower operators were growing for the same contractor they grew for when








Table 5.--Characteristics of growers studied producing broilers under
contract, by size of grower operation, Live Oak, Florida
broiler producing area, June 30, 1971


Unit Size of grower operation Total or
Item of average
measure Small Large all farms


Growers surveyed No. 25 23 48

Age of growers Years 49.7 44.7a 47.6a

Education of growers Years 9.1 10.6a 9.7a

Family living at home No. 3.84 3.32 3.62

Years in broiler production No. 4.02 5.70 4.70

Years with present broiler
contractor No. 3.90 3.46 3.72

Proportion of years with
present contractor Percent 97.0 61.0 79.0

Size of farm
Acres owned No. 155 296 212
Acres rented in No. 128 98 116
Acres rented out No. 1 c
Total acres operated No. 283 393 328

Land used for broiler operation
Acres No. 2.40 5.22 3.56
Value per acre Dollars 261 262 262


One farm had two operators.

One farm'had a son living on farm.

CLess than 0.5.


they started growing broilers. The longest time any grower surveyed had
been growing broilers was 16 years.
Most of the growers had much more land than they used for their
broiler operation. Acres operated by small growers averaged 283 and by
large growers 393. Acres devoted to the broiler enterprise were 2.40
and 5.22 for the two groups, respectively. Acres operated was less than
2
25 acres on three small farms and one large farm (Appendix Table 2).


2T ______--- ----A--- A-1- I---- ---^ ,, 1-.. 1^J ^. l,/ ..A1 -? _~_ ^Wrrrt*- l^n- 1Qf









Amount of Capital Invested in the Broiler Enterprise

At the present time, the standard broiler house being built in the
Live Oak area is 36 feet wide and 320 feet long. This house has a. rated
chick capacity of 12,000 broilers by one contractor and 12,200 by the
other contractor. A small grower normally has two houses and a large
grower three or more houses. However, a few small growers have only one
house. Also, the older broiler houses in the area have less chick capac-
ity per house than those built during recent years. Thus on a per farm
basis the average chick capacity per house for all houses is reduced
depending on the number of older houses being used.
On the farms surveyed, there was a total of 48 broiler houses on the
25 small farms and 91 houses on the 23 large farms, or an average of 1.92
and 3.96 houses per farm for the two groups respectively (Table 6).
Chick capacity per house averaged 11,792 on small grower farms and 11,819
on large grower farms. The average chick capacity of all houses per farm
was 22,640 on small farms and 46,760 on large farms. Chick capacity for
all houses was 13,000 or less on three small farms and 73,200 on one
large farm (Appendix Table 3).
Cost new for brooder houses and brooder house equipment.--At the
time this survey was made, the average brooder house on the farms surveyed
was 4.26 years old and the brooder house equipment 3.86 years. For all
farms, the average cost per house when built for house and facilities and
brooder house equipment was $11,763 or one dollar per chick capacity
(Table 6). On all farms, the estimated life of house and facilities was
18.75 years, and that for brooder house equipment 9.63 years. The depre-
ciated value per house for house and equipment for the 1970-71 study year
was $8,842 on small farms and $8,821 on large farms (Table 6).
Average capital investment in the broiler enterprise.--Capital
investment per farm for the 1970-71 study year for land, buildings and
equipment average $19,496 for small grower operations and $39,754 for
large grower operations (Table 7). Current average capital investment
per chick capacity for all farms was 85 cents.
Houses and facilities represented about 58 percent of the average
grower's investment and brooder house equipment 30 percent. About 9 percent






10


Table 6.--Number of houses, cost new for house and equipment, present
age, expected life and current value, by size of grower
operation, Live Oak, Florida broiler producing area, July 1, 1970
to June 30, 1971


Houses
Total No. 48 91 139
Per grower operation No. 1.92 3.96 2.76


Chick capacity per house

Chick capacity--all houses

Cost new
Total
House and facilities
Brooder house equipment
Total

Per chick capacity
House and facilities
Brooder house equipment
Total

Present age
House and facilities
Brooder house equipment

Expected life
House and facilities
Brooder house equipment

Current value--Average 1970-71
House and facilities
Brooder house equipment
Total


11,792

22,640


Dollars
Dollars
Dollars


Cents
Cents
Cents


Years
Years


Years
Years


Dollars
Dollars
Dollars


7,511
4,393


11,819

46,760


6,999
4,683


11,798

32,550


7,203
4,560


11,904 11,682 11,763


64 59 61
37 40 39
101 99 100


4.05 4.40 4.26
4.05 3.73 3.86


18.56 18.90 18.75
9.54 9.70 9.63


6,057 5,649 5,812
2,785 3,172 3,011
8,842 8,821 8,823


Includes site preparation, water system, plumbing,
and curtains.


electrical, roofing


of the investment was in auxiliary equipment. Auxiliary equipment included
such things as manure spreaders, tractor blades, feather burners and a
charge to the broiler enterprise for its share of the farm tractor, truck,
mower and other miscellaneous items of equipment used in cleaning out

houses and caring for the growing chicks.





11


Table 7.--Investment in land used for broiler production, broiler houses,
broiler house equipment and auxiliary equipment, by size of
grower operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971


iSizc of grower operation All
Item -----
Item f farms
I Small Large


Chick capacity of broiler houses
per grower--No. 22,6A.0 46,760 32,550


Land
House and facilities
Broiler house equipment
Auxiliary equipment

Total


Land
House and facilities
Broiler house equipment
Auxiliary equipment
Total


Investment per gr~'or
-- -.----------.Dollars- ..

6-27 1,367
11,630 22,351
5,347 12,549
1.,892 3,487
19,496 39,754


--------------

931
16,034
8,307
2,547

27,819


Investment per chick capacity
---------------Cents------------------

3 3 3
51 48 49
24 27 25
8 7 8


Proportion of total


Land
House and facilities
Broiler house equipment
Auxiliary equipment

Total


--------------Percent-----------------

3.2 3.4 3.3
59.7 56.2 57.6
27.4 31.6 29.9
9.7 8.8 9,2

100.0 100.0 100.0


aIncludes site preparation, water system, plumbing, electrical, roofing
and curtains.


All operators use butane ga.s brooders. The houses had dirt floors and

most were covered with aluminum roofing. All operators used automatic

feeding equipment. The sides of the houses were equipped with plastic

curtains.










Characteristics of Broilers Produced

Data on characteristics of broilers produced were obtained on
226 broods of broilers sold or 7,558,929 broilers started for the year
July 1, 1970 to June 30, 1971. This was about one-seventh of the broilers
produced in Florida during the year of the study.
Number of broods of broilers sold per farm for the year averaged
4.68 on small farms and 4.74 on large farms (Table 8). The average num-
ber of broilers started per brood was 22,664 on small farms and 45,021
on large farms. The percent of broilers started that were sold varied
very-little between the two size groups. About 94 out of every 100 broilers
started were sold. The percent condemned and the percent that died was
slightly higher on large farms. The percent of broilers that died for
different broods varied from less than one percent to more than 13 percent
(Appendix Table 4). The percent of chickens that were condemned varied
from less than one-half of one percent to more than 18 percent for indi-
vidual broods (Appendix Table 5).
Liveweight per bird sold average 3.701 pounds on both small and
large farms. However, there existed a considerable range in average
weight of broilers sold in different broods. Average weight per broiler
for individual broods varied from 2.760 pounds to 5.072 pounds (Appendix
Table 6).
Age at sale average about 63 days or nine weeks for each size group
(Table 8). Nevertheless, age at time of sale varied from 52 days to
75 days for individual broods (Appendix Table 7).
Feed conversion per pound of live broiler sold, a good measure of
feed efficiency, was slightly higher on small farms and averaged
2.458 pounds on all farms (Table 8). There was a wide range in feed
efficiency as shown in Appendix Table 8. If a feed ratio of 2.449 pounds



3
Although the contractor is concerned with the pounds of feed fed per
pound of broiler sold, he is more concerned with the cost of feed per
pound of broiler sold. The contractor has many combinations of ingre-
dients that he can use in mixing a ration. Different rations will vary
in cost and also as to the amounts that must be fed to produce a pound of
broiler. Although feed conversion is an important factor measuring effi-
ciency, the contractors main concern is with the cost of feed per pound
of broiler rather than with the amount of feed required.










Table 8.--Characteristics of broilers produced under contract, by size
of grower operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971


Unit Size of grower operation All
Item of farms
measure Small Large


Broods of broilers
sold per farm
per year No. 4.68 4.74 4.70

Average broilers
per brood
Started No. 22,664 45,021 31,946
Sold No. 21,316 42,165 29,972
Condemned No. 624 1,395 944
Died No. 724 1,461 1,030

Broilers handled per
farm per year
Started No. 106,066 213,360 150,146
Sold No. 99,759 199,825 140,869
Condemned No. 2,921 6,613 4,438
Died No. 3,386 6,922 4,839

Proportion of broilers
started per farm
per year
Sold Percent 94.06 93.66 93.82
Condemned Percent 2.75 3.10 2.96
Died Percent 3.19 3.24 3.22

Live broilers sold
per farm per year Pounds 369,166 739,515 521,314

Average liveweight
per bird sold Pounds 3.701 3.701 3.701

Age when sold Days 62.6 62.9 62.8

Gain per day Pounds .0591 .0588 .0590

Feed used per farm
per year Pounds 902,949 1,824,542 1,281,485

Feed conversion per
pound sold Pounds 2.446 2.467 2.458













or less is considered good, then 61.5 percent of the broods on small
grower operations and 43.3 percent of the broods on large grower opera-
4
tions obtained this level of feed efficiency.

Variation of selected factors by quarters of the year.--Seasonality
of broiler production is not very great in the Live Oak area. Broods of
broilers are started the year-round. The number of broods sold on both
small and large farms was highest in the April-May-June quarter
(Tables 9 & 10). The average age when sold was slightly higher on both
small and large farms in the July-August-September and October-November-
December quarters. Pounds of feed to produce a pound of broiler in the
small size group was highest in the January-February-March quarter and
in the large size group in the July-August-September quarter. In both
size groups it was lowest in the April-May-June quarter. Also, in both
size groups the payment per broiler sold was highest in the October-
November-December quarter. However, for most factors for both small and
large operators the variation between individual items between quarters
was small and there was little consistency in the pattern between
quarters.












A lower feed efficiency for the large size group might appear to
mean diseconomies of size. However, in this study it was due more to
the sample of growers surveyed. One contractor was less efficient than
the other contractor. However, the less efficient contractor had more
large growers and this tended to lower the feed efficiency of the large
grower group compared to the small grower group.












Table 9.--Comparison of selected factors by quarters of the year,
twenty-five small farms, Live Oak, Florida broiler producing
area., July 1, 1970 to June 30, 1971


Quarter of the year
Unit
Item of July October January April
measure August November February May
September December March June


Broods sold No. 31 27 27 32

Broilers per brood
Started No. 22,961 22,731 22,346 22,586
Sold No. 21,574 21,560 20,992 21,134
Condemned No. 663 511 623 682
Died No. 724 660 731 770


Proportion of broilers
started
Sold Percent 93.96 94.85 93.94 93.57
Condemned Percent 2.89 2.25 2.79 3.02
Died Percent 3.15 2.90 3.27 3.41


Amount of live broilers
sold per brood Pounds 76,855 85,930 77,587 75,990

Average liveweight per
bird sold Pounds 3.562 3.985 3.696 3.595

Age when sold Days 64.2 65.6 60.6 60.0

Gain per day, Pounds .0555 .0607 .0610 .0599

Feed used per brood Pounds 185,550 212,596 194,516 182,063

Feed conversion per
pound sold Pounds 2.414 2.474 2.507 2.396

Payment per pound sold Cents 2.119 2.186 2.153 2.180

Payment per broiler sold Cents 7.548 8.714 7.959 7.838













Table 10.--Comparison of selected factors by quarters of the year,
twenty-three large farms, Live Oak, Florida broiler producing
area., July 1, 1970 to June 30, 1971


Quarter of the year
Unit
Item of July October January April
measure August November February May
September December March June

Broods sold No. 24 24 27 34

Broilers per brood
Started No. 44,332 43,369 45,185 46,543
Sold No. 41,595 40,737 41,947 43,748
Condemned No. 1,424 1,146 1,651 1,348
Died No. 1,313 1,486 1,587 1,447


Proportion of broilers
started
Sold Percent 93.83 93.93 92.84 93.99
Condemned Percent 3.21 2.64 3.65 2.90
Died Percent 2.96 3.43 3.51 3.11


Amount of live broilers
sold per brood Pounds 145,985 158,717 158,723 159,132

Average liveweight per
bird sold Pounds 3.510 3.660 3.784 3.637

Age when sold Days 64.0 65.7 61.6 61.3

Gain per day Pounds .0548 .0557 .0614 .0593

Feed used per brood Pounds 357,613 388,748 403,962 386,612

Feed conversion per
pound sold Pounds 2.735 2.449 2.545 2.430

Payment per pound sold Cents 2.049 2.108 2.080 2.115

Payment per broiler sold Cents 7.192 8.212 7.872 7.694








Use of labor.--Hours of labor for the broiler enterprise included
the time spent in caring for the chickens while they were growing and
also the time spent in cleaning out the houses and getting them ready for
another brood.
Total hours for the year spent on the broiler enterprise averaged
1,664 hours on small farms and 3,060 hours on large farms (Table 11).
Hired labor accounted for 15 percent of the total hours on small farms
and 32 percent on the large farms.
The hours of labor per 1,000 chicks started averaged 15.68 on small
farms, 14.34 on large farms or 14.90 for all farms. Thus labor effi-
ciency was slightly higher on large farms. For houses with a capacity
of 12,000 broilers, the requirement per house per brood for large farms
was 16.08 hours less than that for small farms.
There was a considerable variation in amount of labor per 1,000 chicks
started by individual growers. On small grower operations, the third of
the operators with the least labor per 1,000 chicks started averaged
13.01 hours, the medium third 15.45 hours and the high third 19.16 hours
(Table 12). On large farms, the hours of labor per 1,000 chicks started
for the low, medium and high groups were 11.28, 14.42 and 18.48, respec-
tively (Table 13).6
There were a number of factors that caused variations in amounts of
labor for different growers. On small farms an important one was age of
grower for the high labor group. On the large farms the medium and low
labor groups were larger than the high labor group. The large grower
group with the highest amount of labor per 1,000 chicks started was
higher for each of the three labor categories--hired, operator and other
family labor.



5Hours of labor did not include "vacation time" between broods.
Broilers require constant supervision throughout the growing period, even
though the number of hours per day after the first two weeks may be low.
A grower may postpone starting another brood for a week or more because
of "personal considerations." That is, he may want to take a trip or
vacation that would not be possible if he were growing out a brood of
broilers.

See tables 10 and 11 in the appendix for the amount of labor reported
by each individual grower in the small and large grower operations,
respectively.












Table 11.--Labor used in producing broilers under contract, by size of
grower operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971


Size of grower
Unit
Item of operation All
Item of
farms
measure
Small Large


Broods of broilers sold per farm
per year

Labor spent on the broiler enterprise
per farm per year
Hired
Operator
Other family labor
Total

Proportion of labor by sources
Hired
Operator
Other family labor
Total

Cost of hired labor per hour

Charge for operator and family
labor per hour

Labor per 1,000 broilers started
Hired
Operator
Other family labor
Total

Labor per brood started
Hired
Operator
Other family labor
Total


4.68


Hours
Hours
Hours
Hours


Percent
Percent
Percent
Percent

Dollars


Dollars


Hours
Hours
Hours
Hours


Hours
Hours
Hours
Hours


249
825
590


4.74


977
1,253
830


4.70


548
1,001
688


1,664 3,060 2,237


14.9 31.9 24.6
49.6 41.0 44.7
35.5 27.1 30.7
100.0 100.0 100.0

1.34 1.41 1.39


1.50 1.50 1.50


2.34 4.58 3.65
7.78 5.87 6.67
5.56 3.89 4.58
15.68 14.34 14.90


53 206 117
176 264 213
126 175 146
355 645 476










Table 12.--Variation in hours of labor used per 1,000 chicks started in
producing broilers under contract, 25 small grower operations,
Live Oak, Florida broiler producing area, July 1, 1970 to
June 30, 1971


Low Medium High Average,
third third third all farms

Number of farms No. 9 8 8 25
Age of grower Years 44 45 61 50
Broods sold No. 4.78 4.50 4.75 4.68
Chicks started per
brood No. 22,706 24,046 21,306 22,664
Labor used per
1,000 chicks started
Hired Hours 1.76 2.13 3.27 2.34
Operator Hours 6.59 7.66 9.33 7.78
Other family Hours 4.66 5.66 6.56 5.56
Total Hours 13.01 15.45 19.16 15.68
Labor used per
brood started
Hired Hours 40 51 69 53
Operator Hours 149 184 199 176
Other family Hours 106 136 140 126
Total Hours 295 371 408 355


There was a slight relationship between the amount of labor used per
1,000 chicks started and selected factors. On small farms the group with
the highest number of hours per 1,000 chicks started had the lowest feed
conversion, the highest percent of their chickens started sold and also the
lowest percent of their broilers condemned (Table 14). The medium labor
group had the highest average weight per bird. On small farms in the high
labor group about 95 out of every 100 birds started were sold or about one
more per 100 than for the low labor group.










Table 13.--Variation in hours of labor used per 1,000 chicks started in
producing broilers under contract, 23 large grower operations,
Live Oak, Florida broiler producing area, July 1, 1970 to
June 30, 1971

SLow Medium High Average,
Item Unit h
third third third all farms

Number of farms No. 8 8 7 23
Age of grower Years 44 47 44a 45a
Broods sold No. 4.88 4.62 4.71 4.74
Chicks started per
brood No. 46,810 47,725 39,875 45,021
Labor used per
1,000 chicks started
Hired Hours 3.20 4.36 6.79 4.58
Operator Hours 4.96 5.90 7.10 5.87
Other family Hours 3.12 4.16 4.59 3.89
Total Hours 11.28 14.42 18.48 14.34
Labor used per
brood started
Hired Hours 150 208 271 206
Operator Hours 232 282 283 264
Other family Hours 146 198 183 175
Total Hours 528 688 737 645


aOne farm had two operators.



The relationship between the amount of labor used per 1,000 chicks
started and selected factors on large farm operations was similar to that
on small farm operations. The high labor group had the lowest feed con-
version, the,highest percent of their chicks started sold and the lowest
percent of their broilers condemned. On large farm operations, the high
labor group sold 23 more broilers per 1,000 started than the low labor
group. However, as in the case of the small farm operations, the medium
labor group had the highest average weight per bird.
On both small and large farms, however, the small increase in labor
efficiency did not begin to offset the extra labor cost. On small farm
operations the difference in labor requirements per 1,000 chicks started
was 6.15 hours between the low third and high third labor groups or a
cost difference of $8.98. On large farm operations the difference between









Table 14.--Relation of labor used per 1,000 chicks started to selected
factors, 25 small and 23 large grower operations, Live Oak,
Florida broiler producing area, July 1, 1970 to June 30, 1971


Hours Pounds Pounds Percent Percent Percent


Low third
Medium third
High third
Total or
average
all farms



Low third
Medium third
High third
Total or
average
all farms


25 small
13.01
15.45
19.16


grower operations
2.451 3.700
2.476 3.707
2.406 3.694


93.9
93.4
94.9


3.2
3.3
3.1


25 15.68 2.446 3.701 94.1 2.7 3.2


23 large grower operations
8 11.28 2.489 3.665 92.5 3.8 3.7
8 14.42 2.457 3.733 94.0 2.8 3.2
7 18.48 2.451 3.706 94.8 2.6 2.6


23 14.34


2.467


3.701


93.7


3.2


the two groups was 7.20 hours or $10.47 in cost. Even
the value of extra broilers sold per 1,000 started was
for the low and high labor groups.


on large farms,
less than $1.75


'Growers Income, Production Costs and Returns


Small grower operations.--Small grower operators sold an average of
369,166 pounds of live broilers during the year. Grower payment from the
sale of broilers amounted to $7,973 per farm (Table 15). The estimated
production of manure was 93 tons per farm or .88 ton per 1,000 broilers
started. The manure was valued at $6.60 per ton, or $617 per farm, to




Value per ton placed on manure was value spread on crop or pasture
land.






Table 15.--Grower income, production costs and returns, small grower
operations, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971


Income
Broilers sold 7,973 2.160 7.992 92.8
Broiler manure 617 .167 .618 7.2
Total 8,590 2.327 8.610 100.0


Production costs
Out-of-pocket expenses
Fuel
Litter
Spraying and medication
Electricity and light bulbs
Hired labor
Insurance
Taxes
Telephone
Fuel and oil for truck and tractor
Miscellaneous cash expenses
Sub-total
Mixed fixed and variable costs
Building repair and maintenance
Brooder house equipment repair
and maintenance
Auxiliary equipment repair and
maintenance
Auxiliary equipment depreciation
Sub-total
Noncash and fixed costs
Unpaid operator and family labor
House and facilities depreciation
Brooder house equipment
depreciation
Interest on average investment
@ 7 percent
Sub-total


Total gross cost
Less value of manure produced
Net cost of broilers sold
Returns
Net returns
Returns for operator and family
labor
Total
Per hour
Returns for average capital
invested
Total
Pprrpnf-


526
583
188
231
333
214
162
56
177
76


.143
.158
.051
.062
.090
.058
.044
.015
.048
.021


.527
.584
.188
.232
.334
.215
.162
.056
.178
.076


6.0
6.7
2.1
2.6
3.8
2.4
1.9
.6
2.0
.9


2,546 .690 2.552 29.0


378 .102 .379 4.3

134 .036 .134 1.5

178 .048 .179 2.1
334 .091 .335 3.8
1,024 .277 1.027 11.7


2,122 .575 2.127 24.2
813 .220 .815 9.3

903 .244 .905 10.3

1,365 .370 1.368 15.5
5,203 1.409 5.215 59.3


8,773
617
8,156


-183


1,939
1.37


2.376
.167
2.209


-.049


.526


8.794
.618
8.176


-.184


1.943


100.0


1182 .321 1.185
A -









give a total income of $8,590. The average payment per pound for broilers
sold was 2.160 cents and the average receipts per broiler 7.992 cents.8
The average payment per pound for individual broods varied from 1.8 to
2.5 cents (Appendix Table 9).
Production costs were divided into three groups: (1) out-of-pocket
or cash expenses, (2) mixed fixed and variable costs, and (3) noncash
and fixed costs. The total gross cost per farm was $8,773 or $183 more
than gross income. The out-of-pocket expenses were $2,546 per farm or
29 percent of gross costs. The two most important cash costs were fuel
and litter which averaged .527 and .584 cents, respectively, per broiler
sold.
Annual cost for repairs and maintenance was $378 for house and
facilities, and $134 for brooder house equipment. The total cost per
farm for mixed fixed and variable costs was $1,024 or 1.027 cents per
broiler sold.
Noncash and fixed costs accounted for 59 percent of the gross costs
of growing broilers on small farms. Unpaid operator and family labor
which averaged 2.127 cents per broiler sold was the largest item of cost.
Depreciation was .815 cent and .905 cent per broiler sold on house and
facilities and brooder house equipment, respectively. The interest
charge on average capital invested was 1.368 cents per broiler sold.
Crediting the value of manure produced, the net cost of production
per broiler sold was 2.209 cents per pound or 8.176 cents per broiler.
This compares to contractor payment of only 7.992 cents per broiler sold.
Operator and family labor was charged at $1.50 per hour but since
costs exceeded returns, the average return was $1.37 per hour. The rate
of return on capital invested was 6.06 percent.
To show something of the variation in costs, averages were calculated
for the third of the farms with the lowest cost per broiler sold and the
third of the farms with the highest costs per broiler sold (Table 16).
The low cost farms sold five broods per year and the high cost farms 4.5.




8The average receipts per pound and per broiler sold do not include
any patronage dividend that may be paid by a cooperative association.








able 16.--Variation in growers income, production costs and returns on low third and high third cost per broiler
farms, small grower operations, Live Oak, Florida broiler producing area, July 1, 1970 to June 30, 1971


Average per Average per pound Average per Proportion
Grower operation of broiler sold broiler sold of total
Item
Low cost High cost Low cost High cost Low cost High cost Low cost High cost
farms farms farms farms farms farms farms farms


imber of broods sold 5.00 4.50
unber of broilers sold 106,972 88,941
)unds of broilers sold 395,691 329,476


Dollars Dollars Cents Cents


come
Broilers sold
Broiler manure
Total


8,501
656
9,157


7,073
526
7,599


2.148
.166


2.147
.160


2.314 2.307


Cents Cents


7.948 7.954
.613 .592
8.561 8.546


Percent Percent


92.8
7.2
100.0


93.1
6.9
100.0


reduction costs
Out-of-pocket expenses
Fuel
Litter
Spraying and medication
Electricity and light bulbs
Hired labor
Insurance
Taxes
Telephone
Fuel and oil for truck and
tractor
Miscellaneous cash expenses
Sub-total


590
592
199
222
474
200
154
49

130
61


2,671


.149
.150
.050
.056
.120
.051
.039
.012

.033
.015


2,471


.675


.140
.164
.057
.075
.077
.071
.053
.021

.069
.023


.750


.552
.553
.185
.208
.444
.186
.144
.046

.122
.057


.520
.606
.211
.279
.286
.264
.196
.076

.256
.085


2.497 2.779


7.1
7.2
2.4
2.7
5.7
2.4
1.9
.6

1.6
.7


32.3


5.1
6.0
2.1
2.8
2.8
2.6
2.0
.8

2.5
.8


27.5


Continued


--


__ _


---- I -----I-I--~__~





Cable 16.--Variation in growers income, production costs and returns on low third and high third cost per broiler
farms, small grower operations, Live Oak, Florida broiler producing area, July 1, 1970 to June 30, 1971--
Continued

Average per Average per pound Average per Proportion
grower operation of broiler sold broiler sold of total
Item
Low cost High cost Low cost High cost Low cost High cost Low cost High cost
farms farms farms farms farms farms farms farms


reductionn costs--Continued
Mixed fixed and variable costs
Building repair and maintenance
Brooder house equipment repair
and maintenance
Auxiliary equipment repair and
maintenance
Auxiliary equipment depreciation
Sub-total
Noncash and fixed costs
Unpaid operator and family labor
House and facilities
depreciation
Brooder house equipment
depreciation
Interest on average investment
@ 7 percent
Sub-total
Cotal gross cost
jess value of manure produced
let cost of broilers sold
returns
Net returns
Returns for operator and family


labor
Total
Per hour
Returns for average capital
invested
Total
Percent


Dollars Dollars Cents Cents


117
243


230
402


.084

.037

.029
.062


.129

.033

.070
.122


Cents Cents


.308

.138


.476

.123


.109 .259
.227 .452


Percent Percent


4.0

1.8

1.4
2.9


837 1,164 .212 .354 .782 1.310 10.1 13.0


2,082 2,028 .526 .616 1.946 2.280 25.2 22.6

704 927 .178 .281 .659 1.042 8.6 10.3

842 840 .213 .255 .787 .945 10.2 9.3

1,125 1,556 .284 .472 1.052 1.750 13.6 17.3
4,753 5,351 1.201 1.624 4.444 6.017 57.6 59.5


2.6
4.5


8,261
656


7,605


8,986
526


2.088
.166


2.728
.160


8,460 1.922 2.568


896 -1,387


2,978
2.14


2,021


641
.47


169


.226 -.421


.753



.511


.195



.051


7.723
.613


10.106
.592


100.0


100.0


7.110 9.514

.838 -1.560


2.784



1.889


.720



.190


, -- -------- -----.-.----- ~~~_ ~~-_ ---- ___ -_ ___


.592










Total income per farm was $9,157 on low cost farms and $7,599 on high
cost farms. The low cost farms had a return to labor of $2,978 but the
high cost farms had a return of only $641. Returns per hour of labor were
$2.14 and 47 cents on the two groups of farms, respectively.
The returns per broiler on the two groups of farms were about the
same. Net cost to produce a broiler was 7.110 cents on low cost farms
and 9.514 cents on high cost farms. The big difference in costs for the
two groups of farms was in the amount charged for repairs on buildings
and equipment, auxiliary equipment maintenance and depreciation, depre-
ciation on buildings and interest on capital investment. Average capital
investment on low cost farms was $16,071 but $22,228 on high cost farms.
Large grower operations.--Large operators sold an average of
739,515 pounds of broilers. The average payment for broilers sold was
$15,464 (Table 17). The estimated production of manure was 313 tons per
farm or 1.47 tons per 1,000 broilers started. The manure was valued at
$6.20 per ton or $1,942 per farm to give a gross income of $17,406. The
average payment per pound for broilers sold was 2.091 cents and the aver-
age receipts per broiler 7.248 cents. Average payment per pound received
for broilers sold was .069 cent less on large farms than on small farms.
The amount received per broiler was .744 cent less.
The total gross cost per farm was $17,488 on large farms or $82 more
than the gross income. The proportion of out-of-pocket expenses to gross
income was 5 percent higher on large farms than on small farms. This
difference was due mainly to the use of more hired labor which was 3.8 per-
cent of gross costs on small farms but 7.9 percent on large farms.
The proportion that mixed fixed and variable costs was of gross
costs was about the same for both groups of farms. Noncash and fixed
costs made up a smaller proportion of gross costs on large farms than on
small farms. This was due mainly to a lower cost per unit for operator
and unpaid family labor.
The net cost per broiler sold was 7.286 cents on large farms or
.890 cent less than the cost on small farms. This was due mainly to a.
.292 cent higher credit for broiler manure and a .354 cent reduction in
total labor cost.






Table 17.--Grower income, production costs and returns, large grower
operations, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971

Average Average Average Proportion
per per pound per
Item of
Grower of broiler broiler
total
operation sold sold


Dollars


Income
Broilers sold
Broiler manure
Total
Production costs
Out-of-pocket expenses
Fuel
Litter
Spraying and medication
Electricity and light bulbs
Hired labor
Insurance
Taxes
Telephone
Fuel and oil for truck and tractor
Miscellaneous cash expenses
Sub-total
Mixed fixed and variable costs
Building repair and maintenance
Brooder house equipment repair
and maintenance
Auxiliary equipment repair and
maintenance
Auxiliary equipment depreciation
Sub-total
Noncash and fixed costs
Unpaid operator and family labor
House and facilities depreciation
Brooder house equipment
depreciation
Interest on average investment
@ 7 percent
Sub-total
Total gross cost
Less value of manure produced
Net cost of broilers sold
Returns
Net returns
Returns for operator and family
labor
Total
Per hour
Returns for average capital


invested
Total
Prp n t-


15,464
1,942
17,406



1,194
1,189
382
423
1,376
557
317
71
315
126


Cents


2.091
.263
2.354


.161
.161
.052
.057
.186
.075
.043
.010
.043
.017


Cents Percent


7.248
.910
8.158


.560
.557
.179
.198
.645
.261
.148
.033
.148
.059


88.8
11.2
100.0


6.8
6.8
2.2
2.4
7.9
3.2
1.8
.4
1.8
.7


5,950 .805 2.788 34.0


736 .100 .345 4.2

278 .037 .130 1.6

346 .047 .162 2.0
748 .101 .351 4.3
2,108 .285 .988 12.1


3,119 .422 1.462 17.8
1,448 .196 .679 8.3

2,080 .281 .975 11.9

2,783 .376 1.304 15.9
9,430 1.275 4.420 53.9


17,488
1,942
15,546


-82


3,037
1.46


2,701


2.365
.263
2.102


-.011


.411




.365


8.196
.910
7.286


-.038


1.424




1.266


100.0


i_79 -- --








The returns to operator and family labor on large farms was $1.46
per hour. The return on average capital invested was 6.79 percent.
A comparison of returns and costs on the third of the farms with
the lowest costs and the third of the farms with the highest costs showed
that 5.00 broods were sold on low cost farms and 4.71 on high cost farms
(Table 18). However, the average income was higher on high cost farms
9
since the average price per chick was higher. The returns to labor were
$4,929 on low cost farms and $1,609 on high cost farms. The returns per
hour of labor were $2.28 and 75 cents on the two groups of farms.
As in the case of small farms, the big differences in costs were in
building and equipment repair and maintenance, auxiliary equipment repair
and maintenance and depreciation on house and equipment and interest on
investment. The net cost to produce a broiler was 6.577 cents on low cost
farms and 9.125 cents on high cost farms.
Average all farms.--As seen from the data above, the income, pro-
duction costs and net returns per unit were not greatly different for
small and large grower operations. Thus the figures for all farms are
essentially an average for these two groups.
All operators sold an average of 521,314 pounds of broilers per farm
for a return of $11,051. Broiler manure was valued at $1,161 per farm to
give a gross income of $12,212 (Table 19). The average payment per pound
for broiler sold was 2.120 cents and the average payment per broiler
7.360 cents. Payment per pound for individual broods varied from 1.80 to
2.50 cents (Appendix Table 9).
Total gross cost per farm was $12,353 to give a net return of -$141.
Out-of-pocket expenses made up 31.9 percent, mixed fixed and variable
costs 11.9 percent, and noncash and fixed costs 56.2 percent of the gross
cost. The cost for fuel averaged .533 cent per broiler sold and the cost
of litter .554 cent. The largest item of expenses was unpaid operator
and family labor which amounted to 1.687 cents per broiler sold. Interest
on average investment was 1.297 cents per broiler sold. Total noncash
and fixed costs averaged 4.622 cents per broiler sold.




The low cost farms contained more producers from one contractor that
paid less per chick for broilers produced.







Table 18.--Variation in growers income, production costs and returns on low third and high third cost per broiler
farms, large grower operations, Live Oak, Florida broiler producing area, July 1, 1970 to June 30, 1971


Average per Average per pound Average per Proportion
grower operation of broiler sold broiler sold of total
Item
Low cost High cost Low cost High cost Low cost High cost Low cost High cost
farms farms farms farms farms farms farms farms

Number of broods sold 5.00 4.71
Number of broilers sold 200,682 192,558
Pounds of broilers sold 733,121 724,359


Dollars Dollars Cents Cents Cents Cents Percent Percent
Income
Broilers sold 14,879 15,977 2.030 2.206 7.414 8.297 88.5 90.0
Broiler manure 1,925 1,771 .262 .244 .959 .920 11.5 10.0
Total 16,804 17,748 2.292 2.450 8.373 9.217 100.0 100.0

Production costs
Out-of-pocket expenses
Fuel 1,254 1,094 .171 .151 .625 .568 8.3 5.7
Litter 1,178 1,209 .161 .167 .587 .628 7.8 6.3
Spraying and medication 321 489 .044 .068 .160 .254 2.1 2.5
Electricity and light bulbs 381 489 .052 .067 .190 .254 2.5 2.5
Hired labor 1,061 1,239 .145 .171 .529 .643 7.0 6.4
Insurance 515 644 .070 .089 .257 .334 3.4 3.3
Taxes 316 319 .043 .044 .157 .166 2.1 1.6
Telephone 48 85 .006 .012 .024 .044 .3 .4
Fuel and oil for truck and
tractor 227 380 .031 .052 .113 .197 1.5 2.0
Miscellaneous cash expenses 137 115 .019 .016 .068 .060 .9 .6
Sub-total 5,438 6,063 .742 .837 2.710 3.148 35.9 31.3



Continued






Table 18.--Variation in growers income, production costs and returns on low third and high third cost per broiler
farms, large grower operations, Live Oak, Florida broiler producing area, July 1, 1970 to June 30, 1971

Average per Average per pound Average per Proportion
grower operation of broiler sold broiler sold of total
Item
Low cost' High cost Low cost High cost Low cost High costLow cost High cost
farms farms farms farms farms farms farms farms
________________________________ I farms farms farm-


Dollars Dollars Cents Cents


Cents Cents


Percent Percent


Production costs--Continued
Mixed fixed and variable costs
Building repair and maintenance
Brooder house equipment repair
and maintenance
Auxiliary equipment repair and
maintenance
Auxiliary equipment depreciation
Sub-total
Noncash and fixed costs
Unpaid operator and family labor
House and facilities
depreciation
Brooder house equipment
depreciation
Interest on average investment
@ 7 percent
Sub-total
Total gross cost
Less value of manure produced
Net cost of broilers sold
Returns
Net returns
Returns for operator and family
labor
Total
Per hour
Returns for average capital
invested
Total
Percent


299
541


839

349

383
994


.089

.023


.116

.048


.041 .053
.074 .137


.325

.084

.149
.270


.436

.181

.199
.516


4.4

1.8


2.0
3.6


1,662 2,565 .227 .354 .828 1.332 11.0 13.3


3,248 3,204 .443 .442 1.619 1.664 21.5 16.6

1,059 1,755 .144 .242 .527 .911 7.0 9.1

1,426 2,679 .195 .370 .711 1.392 9.5 13.8

2,290 3,077 .312 .425 1.141 1.598 15.1 15.9
8,023 10,715 1.094 1.479 3.998 5.565 53.1 55.4
15,123 19,343 2.063 2.670 7.536 10.045 100.0 100.0
1,925 1,771 .262 .244 .959 .920
13,198 17,572 1.801 2.426 6.577 9.125

1,681 -1,595 .229 -.220 .837 -.828


4,929 1,609 .672 .222 2.456 .836
2.28 .75


3,971 1,482 .541 .205 1.978 .770
12.1 3.4






Table 19.--Grower income, production
Live Oak, Florida broiler
June 30, 1971


costs and returns, average all farms,
producing area., July 1, 1970 to


Average Average Average on
Super per pound per
Item of
Item grower lof broiler broiler al
peri sold total
operations sold sold


Dollars Cents


Cents Percent


Income
Broilers sold
Broiler manure
Total
Production costs
Out-of-pocket expenses
Fuel
Litter
Spraying and medication
Electricity and light bulbs
Hired labor
Insurance
Taxes
Telephone
Fuel and oil for truck and tractor
Miscellaneous cash expenses
Sub-total
Mixed fixed and variable costs
Building repair and maintenance
Brooder house equipment repair
and maintenance
Auxiliary equipment repair and
maintenance
Auxiliary equipment depreciation
Sub-total
Noncash and fixed costs
Unpaid operator and family labor
House and facilities depreciation
Brooder house equipment
depreciation
Interest on average investment
@ 7 percent
Sub-total

Total gross cost
Less value of manure produced
Net cost of broilers sold

Returns
Net returns
Returns for operator and family
labor
Total
Per hour
Returns for average capital
invested
Total
Percent


11,051
1,161
12,212


801
832
268
310
761
355
226
62
234
96


2.120
.223
2.343


.154
.160
.051
.059
.146
.068
.043
.012
.045
.019


7.360
.773
8.133


.533
.554
.178
.206
.507
.237
.151
.041
.156
.064


90.5
9.5
100.0



6.5
6.7
2.1
2.5
6.2
2.9
1.8
.5
1.9
.8


3,945 .757 2.627 31.9


525 .101 .350 4.2

193 .037 .128 1.6

247 .047 .164 2.0
504 .097 .336 4.1
1,469 .282 .978 11.9


2,532 .486 1.687 20.5
1,074 .206 .715 8.7

1,386 .266 .923 11.2

1,947 .373 1.297 15.8
6,939 1.331 4.622 56.2
12,353 2.370 8.227 100.0
1,161 .223 .773
11,192 2.147 7.454


-141 -.027 -.094


2,391 .459 1.593
1.42


1.806 .346 1.203
6.49 -- -


--








Unpaid family and operator's labor averaged 1,689 hours per farm.
Return for operator and family labor was $2,391 per farm or $1.42 per
hour. The return for average capital invested was $1,806, or 6.49 percent.



Crop and Livestock Enterprises Other than Broilers

As indicated earlier, data on income and expenses were obtained only
for the broiler enterprise. However, information was obtained on kind
and acres of crops grown during the 1970-71 crop year and the kind and
number of livestock on the farms on June 30, 1971.
All but four of the small and two of the large grower operators
grew some crops and/or had some livestock. From the standpoint of number
of farmers growing and acres grown per farm, corn was the most important
crop. Corn was grown on 72 percent of the small grower operations and
70 percent of the large grower operations (Table 20). Average acres per
grower growing corn were 66.9 and 77.6 for the two size groups, respectively.
Rye and millet were grown on 40 percent or more of the farms in each size
group.
Tobacco was grown on 28 percent of the small grower operations and
48 percent of the large grower operations. Average acres per grower
growing tobacco were 4.3 and 14.2 for the two size groups, respectively.
Watermelons were grown by four growers in each of the two size groups.
Peanuts were grown on three of the small and two of the large grower
operations. Average acres of all crops per farm were 81.7 on small
grower operations and 131.1 on large grower operations.
Beef cattle and hogs were the two important livestock enterprises
found on these farms.10 Seventy-six percent of the small and 78 percent
of the large grower operators reported cows. The average number per farm
growing was 26.0 on small farms and 51.4 on large farms. The number of




1Sawdust is normally used as a litter in broiler houses. Most broiler
growers, when they clean out their broiler houses, spread the cleaningg"
from broilers grown on their crop and/or pasture land. On most farms,
the productivity, especially of pasture land, is increasing. To more fully
utilize the increased forage being produced on pasture land, most operators
need to either consider adding livestock enterprises or increasing the
size of the livestock enterprises they already have.








Table 20.--Crop and livestock enterprises on farms other than broilers, by size of grower operation,
Live Oak, Florida broiler producing area, July 1, 1970 to June 30, 1971


Small grower operation Large grower operation

ItemAverage per farm Average per farm
SPer grower All growers ers reporting Per grower All growers

reporting surveyed reporting surveyed


Crops grown 1970-71 season


Corn
Rye
Millet
Tobacco
Watermelons
Hay
Peanuts
Other
Total


Number Percent
18 72.0
13 52.0
10 40.0
7 28.0
4 16.0
3 12.0
3 12.0
5 20.0
xx xx


Acres
66.9
29.2
11.6
4.3
35.8
10.3
18.7
17.0
xx


Acres
48.2
15.2
4.6
1.2
5.7
1.2
2.2
3.4
81.7


Number Percent Acres
16 69.6 77.6
15 65.2 47.8
10 43.5 19.4
11 47.8 14.2
4 17.4 54.2
6 26.1 30.5
2 8.7 18.0
9 39.1 29.9
xx xx xx


Livestock on farms 6-30-71


Number Percent


Number


Number


Number Percent


Number Number


Cattle
Bulls
Cows
Other cattle
Hogs
Boars
Brood sows
Other hogs
Horses and ponies


Acres
54.0
31.2
8.4
6.8
9.4
8.0
1.6
11.7
131.1


60.0
76.0
76.0

36.0
48.0
52.0
24.0


1.1
26.0
18.0

1.3
9.5
57.0
2.3


0.7
19.8
13.7

0.5
4.6
29.6
0.6


65.2
78.3
78.3

39.1
43.5
47.8
34.8


1.7
51.4
36.1

1.6
12.2
94.4
3.0


1.1
40.2
28.3

0.6
5.3
45.1
1.0








other cattle, excluding bulls, was 18.0 and 36.1 for the two groups,
respectively. Brood sows were reported on 48 percent of the small farms
and 44 percent of the large farms. The average number per farmer growing
hogs was 9.5 and 12.2 for the small and large groups, respectively.
Other hogs were reported on 52 percent of the small farms and averaged
57.0 hogs per farm. On large farms, other hogs were reported on 48 per-
cent of the farms and averaged 94.4 hogs per farm. The number of growers
reporting hogs in each size group and also the number of hogs per farm
would have been higher except for the low hog prices in 1971 which were
causing growers to reduce the number of hogs normally grown or to sell
off their hogs altogether.



Income from Off-farm Employment

To learn if operators with broiler enterprises and/or their spouses
earned income other than that from their broilers and other farm
enterprises, data. were obtained on kind, months worked and income from
off-farm employment.
Eleven operators in each size group worked off the farm either full
time or a part of the year (Table 21). The average time worked was
8.6 months for operators in the small grower group and 7.3 months in the
large grower group. Average earnings for each working operator were
$4,391 in the small grower group and $3,426 in the large grower group.
Average earnings per operator for all operators were $1,932 and $1,639
for the small and large grower groups, respectively.
Five spouses in the small and four in the large grower group held
off-farm jobs. The average time worked was 8.6 months in the small grower
group and 10.5 months in the large grower group. The average earnings for
all spouses were $745 in the small grower group and $710 in the large
grower group. The average earnings per farm for all farms from off-farm
work of operators and/or their spouses were $2,677 on small grower opera-
tions and $7,349 on large grower operations. These earnings were equal
to 34 percent of the average value of broilers sold on small grower opera-
tions and 15 percent on large grower operations.









Table 21.--Income from off-farm employment of farm operators and/or
spouses, by size of grower operation, Live Oak, Florida.
broiler producing area, July 1, 1970 to June 30, 1971


Months Average earnings
M |per farm
Persons surveyed worked per fa
Item
reporting per person
Sp Per person All persons
reporting r
Reporting surveyed

No. Percent No. --------Dollars--------

Small grower operations
Farm operators 11 44.0 8.6 4,391 1,932
Spouses 5 20.0 8.6 3,725 745
Total xx xx xx xx 2,677

Large grower operations
Farm operators 11 47.8 7.3 3,426 1,639
Spouses 4 17.4 10.5 4,082 710
Total xx xx xx xx 2,349


SUMMARY


Most broilers produced in Florida are produced and marketed under
contract between the "grower" (poultry farmer) and "contractor" (usually
a poultry integrator) where each bears a specific part of the costs and
risks in production.
The number of broilers produced in the state increased from
12,855,000 in 1965 to 46,695,000 in 1970. Much of this increase occurred
in the Live Oak area, particularly in Lafayette and Suwannee counties.
It is believed that the orderly development of the broiler industry
could be improved if both contractors and growers were better informed
concerning some of the factors affecting the cost of producing broilers
on contract, particularly at the grower level. Therefore, the major
purposes of this study are: (1) to provide a descriptive analysis of
contract broiler production in the Live Oak area including technology
and production factors utilized, and (2) to determine growers' receipts,
costs and net returns from producing broilers on contract, by size of


production units.









To aid in selecting a sample for the study, two contractors provided
a list of their growers showing counties in which located and total chick
capacity of all houses per grower, as of June 30, 1971. Using these
data, a. sample of farms to be surveyed was randomly selected to represent
growers in two size groups--small, 26,000 or less chick capacity and
large, 26,001 or more chick capacity. Records were obtained for 48 grower
operations--25 small and 23 large.
Information for each farm was obtained in a personal interview with
the farm operator. Data on capital investment, income and expenses were
limited to the broiler enterprise. Information collected covered broods
of.broilers sold during the period July 1, 1970 to June 30, 1971.
Although records did not cover the entire farm operation, data were ob-
tained on acres in crops being grown during the 1970-71 crop year. The
number of livestock, other than broilers, on the farm on June 30, 1971
was recorded. A record was also obtained of off-farm work and earnings
of the operators and/or their spouses for the study period. All data
were summarized to show averages for small operations, large operations
and all operations.
Average age of growers on small operations was 49.7 years and large
operations 44.7 years. Years of schooling averaged 9.1 and 10.6 for the
two groups, respectively. Years in broiler production averaged 4.02 for
small grower operations and 5.70 for large grower operations.
There was a total of 48 broiler houses on small farms and 91 houses
on large farms. The average chick capacity per farm of all houses was
22,640 on small farms and 46,760 on large farms.
For all farms, the average cost new per house for house and facili-
ties and brooder house equipment was $11,763 or one dollar per chick
capacity. The average house was 4.26 years old and had an estimated life
of 18.75 years. The brooder house equipment was 3.86 years old and had
an estimated life of 9.63 years. For the study year the depreciation
value per house for house and equipment was $8,823 on all farms.
In 1970-71, capital investment in the broiler enterprise per grower
for land, buildings and equipment averaged $19,496 for small grower opera-
tions and $39,754 for large grower operations. Houses and facilities
represented about 58 percent of the average investment, brooder house
equipment 30 percent, auxiliary equipment 9 percent and land 3 percent.









Number of broods of broilers sold per farm during the study year
averaged 4.68 and 4.74 on the two operations. Average number of broilers
started per brood was 22,664 on small operations and 45,021 on large
operations. About 94 out of every 100 broilers started were sold. Number
of broilers sold during the year averaged 99,759 on small operations and
199,825 on large operations. Liveweight per bird sold averaged 3.701 pounds
and age at sale about 63 days for each size group. Feed conversion per
pound of live broiler sold was slightly higher on small grower operations
but averaged 2.458 for all farms.
Seasonality of broiler operations is not very great. The number of
broods sold on both small and large operations was highest in the April-
May-June quarter. The average age when sold was slightly higher on both
small and large farms in the July-August-September and October-November-
December quarters.
Total hours of man labor per year spent on the broiler enterprise
averaged 1,664 hours on small operations and 3,060 on large operations.
Hired labor accounted for 15 percent of the total hours on small farms
and 32 percent on large farms. Hours of labor per 1,000 broilers started
averaged 15.68 on small farms and 14.34 on large farms.
On small grower operations for the year studied, the pounds of live
broilers sold per farm averaged 369,166. Payment per pound averaged
2.160 cents and receipts per broiler 7.992 cents. The receipts for
broilers sold was $7,973 per farm and the value of manure produced $617
to give a gross income of $8,590. Total gross cost per farm was $8,773
or $183 more than the gross income. The net cost to produce a broiler
was 2.209 cents per pound or 8.176 cents per broiler sold. The two most
important cash costs were fuel and litter which averaged .527 cent and
.584 cent, respectively, per broiler sold. Unpaid operator and family
labor accounted for 24 percent of the gross cost of each broiler sold.
The average returns per hour for operator and family labor was $1.37
and the rate of return on capital invested 6.06 percent.
On large grower operations, pounds of broilers sold per farm were
739,515 pounds for an average value of $15,464. The amount received per
broiler sold was 7.248 cents which was .744 cent less than the amount
received per broiler on small grower operations. The total gross cost
per farm was $17,488 or $82 more than the gross income. The net cost per









broiler sold was 7.286 cents or .890 cent less than the cost on small
farms. The difference in cost was due mainly to a .292 cent higher credit
for broiler manure and a .354 cent reduction in total labor cost. The
returns to operator and family labor on large farms was $1.46 per hour.
The return on average capital invested was 6.79 percent.
All but four of the small and two of the large grower operators
grew some crops and/or had some livestock. Corn was grown on 72 percent
of the small grower operations and 70 percent of the large grower
operations. Tobacco was grown by 28 percent of the small and 48 percent
of the large grower operators. Average acres of crops per farm for all
growers surveyed was 82 on small farms and 131 on large farms. Beef
cattle and hogs were the two important livestock enterprises. Seventy-six
percent of the small and 78 percent of the large grower operators reported
beef cows. Brood sows were reported on 48 and 44 percent of the two
groups of farms, respectively.
Eleven operators in each size group and five spouses in the small
and four in the large worked off the farm either full time or a part of
the year. The average earnings per farm for all farms for off-farm work
of operators and/or their spouses were $2,677 on small grower operations
and $2,349 on large grower operations. These earnings were equal to
34 percent of the average value of broilers sold on small grower opera-
tions and 15 percent on large grower operations.

































APPENDIX





40












Appendix Table l.--Age and education of broiler growers, by size of
grower operation, Live Oak, Florida broiler producing
area, June 30, 1971


----------Number of growers----------


Age in years
Less than 30
30 39
40 49
50 59
60 69
70 and over
Total

Education: Years of schooling
1 6 grades
7 9 grades
10 12 grades
Some college attendance
STotal


aOne farm had two operators.


4 -- 4
2 -- 2
25 24a 49a


6 1 7
9 8 17
8 12 20
2 3 5
25 24a 49a








Appendix Table 2.--Acres operated, by size of grower operation, Live Oak,
Florida broiler producing area, June 30, 1971

Size of grower operations
Acres operated Total
Small Large

Number ---------Number of growers----------
Less than 10 2 -- 2
10 24.9 1 1 2
25 49.9 2 -- 2
50 74.9 -- 1 1
75 99.9 -- 1 1
100 149.9 3 2 5

150 199.9 7 3 10
200 249.9 3 4 7
250 299.9 1 4 5
300 399.9 4 2 6
400 and over 2 5 7
Total 25 23 48


Average farm size, acres 283 393 328




Appendix Table 3.--Broiler house capacity, by size of grower operation,
Live Oak, Florida broiler producing area, June 30, 1971

Size of grower operation
Chick capacity--all houses l Total
Small Large

Number ---------Number of growers----------
13,000 or less 3 -- 3
13,001 to 26,,000 22 -- 22
26,001 to 39,000 -- 6 6
39,001 to 52,000 -- 14 14
52,001 to 71,500 -- 2 2
71,501 or more -- 1 1
Total 25a 23b 48


Average chick capacity--all houses 22,640 46,760 32,550


aRange in size--small growers

Range in size--large growers


12,000 to 24,400

30,900 to 73,200

















Appendix Table 4.--Percent of chickens started that died, by size of
grower operation, Live Oak, Florida broiler producing
area, July 1, 1970 to June 30, 1971


Percent of Broods in Broods in
Total
chickens started small grower large grower b
a broods
that died operation operation

No. Percent No. Percent No. Percent

Less than 1.500 1 .9 3 2.7 4 1.8
1.500 1.999 20 17.1 17 15.6 37 16.4
2.000 2.499 31 26.5 27 24.8 58 25.7
2.500 2.999 20 17.1 21 19.2 41 18.1
3.000 3.499 9 7.7 15 13.8 24 10.6
3.500 3.999 11 9.4 10 9.2 21 9.3
4.000 4.499 7 6.0 4 3.7 11 4.9

4.500 4.999 3 2.6 4 3.7 7 3.1
5.000 5.499 2 1.7 -- -- 2 .9
5.500 5.999 3 2.5 -- -- 3 1.3
6.000 6.499 4 3.4 1 .9 5 2.2
6.500 6.999 2 1.7 3 2.7 5 2.2
7.000 or more 4 3.4 4 3.7 8 3.5
Total 117 100.0 109 100.0 226 100.0


aRange in proportion of chickens s


tarted that died:


Small grower operation 1.397 to 10.703 percent
Large grower operation .874 to 13.492 percent.

















Appendix Table 5.--Percent of chickens started that were condemned, by
size of grower operation, Live Oak, Florida broiler
producing area, July 1, 1970 to June 30, 1971


Percent of
Perct of Broods in Broods in
chickens started Total
chickens s d small grower large grower o
that were broods
condemned operation operation
condemned

No. Percent No. Percent No. Percent

Less than .999 12 10.2 9 8.3 21 9.3
1.000 1.499 16 13.7 12 11.0 28 12.4
1.500 1.999 20 17.1 12 11.0 32 14.2
2.000 2.499 17 14.5 20 18.4 37 16.4
2.500 2.999 9 7.7 11 10.1 20 8.8
3.000 3.499 12 10.2 7 6.4 19 8.4

3.500 3.999 9 7.7 9 8.2 18 8.0
4.000 4.499 5 4.3 8 7.3 13 5.7
4.500 4.999 5 4.3 11 10.1 16 7.1
5.000 5.499 3 2.6 6 5.5 9 4.0
5.500 5.999 2 1.7 3 2.8 5 2.2
6.000 or more 7 6.0 1 .9 8 3.5
Total 117 100.0 109 100.0 226 100.0


Range in proportion of chickens started that
Small grower operation .391 to 11.450
Large grower operation .428 to 18.559


were condemned:
percent
percent.
















Appendix Table 6.--Average liveweight of broilers sold, by size of grower
operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971


Average
Average .Broods in Broods in
liveweight of Total
liveweight of small grower large grower Total
broilers at time broods
of sale (pounds)a operation operation

No. Percent No. Percent No. Percent

Less than 3.199 -- -- 5 4.6 5 2.2
3.200 3.349 12 10.2 3 2.7 15 6.7
3.350 3.499 27 23.1 16 14.7 43 19.0
3.500 3.649 23 19.6 27 24.8 50 22.1
3.650 3.799 19 16.2 27 24.8 46 20.4
3.800 3.949 20 17.1 11 10.1 31 13.7

3.950 4.099 5 4.3 8 7.3 13 5.8
4.100 4.249 1 .9 4 3.7 5 2.2
4.250 4.399 5 4.3 5 4.6 10 4.4
4.400 4.549 1 .9 2 1.8 3 1.3
4.550 and over 4 3.4 1 .9 5 2.2
Total 117 100.0 109 100.0 226 100.0


aRange in liveweight of broilers sold:
Small grower operation 3.220 to 5.072 pounds
Large grower operation 2.760 to 4.652 pounds.
















Appendix Table 7.--Average age of broilers when sold, by size of grower
operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971


Average age of Broods in Broods in
Total
broilers at time small grower large grower
r- i 11 \a broods
of sale (days) operation operation

No. Percent No. Percent No. Percent

Less than 56 days 1 .8 1 .9 2 .9
56 1 .8 1 .9 2 .9
57 13 11.1 3 2.8 16 7.1
58 6 5.1 6 5.5 12 5.3
59 10 8.6 8 7.3 18 8.0

60 10 8.6 6 5.5 16 7.1
61 6 5.1 12 11.0 18 8.0
62 11 9.4 17 15.6 28 12.4
63 16 13.7 13 11.9 29 12.8
64 14 12.0 14 12.9 28 12.4

65 7 6.0 7 6.4 14 6.2
66 8 .8 4 3.7 12 5.3
67 1 6.8 4 3.7 5 2.2
68 3 2.6 2 1.8 5 2.2
69 -- -- 6 5.5 6 2.6

70 or more 10 8.6 5 4.6 15 6.6
Total 117 100.0 109 100.0 226 100.0


aRange in average age of broilers
Small grower operation 54
Large grower operation 52


time of sale:
75 days
71 days.

















Appendix Table 8.--Average feed conversion ratios, by size of grower
operation, Live Oak, Florida broiler producing area,
July 1, 1970 to June 30, 1971


Pounds of feed Broods in Broods in
Total
fed per pound of small grower large grower broods
live broiler sold operation operation

No. Percent No. Percent No. Percent

Less than 2.250 4 3.4 -- -- 4 1.8
2.250 2.349 21 17.9 14 12.9 35 15.5
2.350 2.449 47 40.2 44 40.4 91 40.3

2.450 2.549 19 16.2 30 27.5 49 21.7
2.550 2.649 14 12.0 17 15.6 31 13.7
2.650 2.749 8 6.9 2 1.8 10 4.4
2.750 or more 4 3.4 2 1.8 6 2.6
Total 117 100.0 109 100.0 226 100.0


aRange in pounds of feed fed per pound of live broiler sold:
Small grower operation 2.242 to 2.823 pounds
Large grower operation 2.276 to 3.311 pounds.

















Appendix Table 9.--Contract payment per pound of live broiler, per brood
basis, by size of grower operation, Live Oak, Florida
broiler producing area, July 1, 1970 to June 30, 1971


Payment per pound Broods in Broods in
of live broiler small grower large grower Total
in centsa operation operation

No. Percent No. Percent No. Percent

1.80 1.84 12 10.2 19 17.4 31 13.7
1.85 1.89 3 2.6 6 5.5 9 4.0
1.90 1.94 22 18.8 15 13.8 37 16.4
1.95 1.99 3 2.6 6 5.5 9 4.0
2.00 2.04 3 2.6 8 7.3 11 4.9

2.05 2.09 18 15.4 11 10.1 29 12.8
2.10 2.14 4 3.4 2 1.8 6 2.7
2.15 2.19 3 2.6 3 2.8 6 2.6
2.20 2.24 8 6.8 6 5.5 14 6.2
2.25 2.29 -- 1 .9 1 .4

2.30 2.34 1 .8 9 8.3 10 4.4
2.35 2.39 12 10.2 12 11.0 24 10.6
2.40 2.44 3 2.6 -- -- 3 1.3
2.45 2.49 -- -- 4 3.7 4 1.8
2.50. 25 21.4 7 6.4 32 14.2
Total 117 100.0 109 100.0 226 100.0


a
Range in payment per pound of live
Small grower operation 1.80
Large grower operation 1.80


broiler:
to 2.50 cents
to 2.50 cents.




Appendix Table 10.--Variation in
contract, 25
July 1, 1970


hours of labor used per 1,000 chicks started in producing broilers under
small grower operations, Live Oak, Florida broiler producing area,
to June 30, 1971


Grower
number


e Chicks
Age
Broods started
of sold per
grower brood

Years Number Number


43 55 5 24,010
28 38 5 12,380
24 35 5 24,040
16 52 5 24,140
4 30 5 24,100
48 38 4 24,025
6 31 5 24,000
11 52 4 24,200
19 63 5 24,020
Average 44 4.78 22,706

44 31 4 23,950
15 35 4 24,012
42 45 5 24,010
50 57 5 24,280
7 50 4 24,012
22 57 4 24,012
46 65 5 24,000
39 22 5 24,050
Average 45 4.50 24,046

10 52 5 24,000
34 46 4 24,138
47 67 5 23,970
35 80 5 24,010
31 60 5 24,020
27 55 5 24,010
37 50 4 12,012
8 76 5 12,999
Average 61 4.75 21,306
Average
all farms 50 4.68 22.664


Labor used per 1,000 chicks started


Hired

Hours

3.12

2.79
4.14


1.50

2.79
1.76

2.80
.67
1.67
1.65
4.14
3.75
.83
2.08
2.13


2.07

6.25
1.66
8.33
2.75
5.62
3.27


Operator

Hours


2.26
8.98
4.85
6.64
7.41
10.67
11.01
6.39
6.59

6.47
7.20
11.79
5.52
8.75
6.54
5.83
8.90
7.66

9.21
11.20
9.89
8.45
10.37
6.75
5.66
12.92


9.33


Other
family
Hours
Low third
7.62
9.21
.83
3.69
6.22
5.58
2.08
3.47
5.37


4.66
Medium third
5.43
7.00
1.66
8.19
2.50
5.50
9.17
5.36
5.66
High third
7.83
3.89
7.34
4.25
7.08
5.25
13.15
7.54


6.56


10.74
11.47
12.60
12.68
12.86
12.99
14.25
14.48
14.55
13.01

14.70
14.87
15.12
15.36
15.39
15.79
15.83
16.34
15.45

17.04
17.16
17.23
18.95
19.11
20.33
21.56
26.08
19.16


Labor used per brood started


Total

Hours


75 -- 183
-- 28 114
67 216 20
100 117 89
-- 160 150
-- 178 134
36 256 50
-- 266 84
67 153 129


40

67
16
40
40
100
90
20
50
51


50

150
40
200
33
73


149

155
173
283
134
210
157
140
214
184

221
270
237
203
249
162
68
168


106

130
168
40
199
60
132
220
129
136

188
94
176
102
170
126
158
98
140


258
142
303
306
310
312
342
350
349
295

352
357
363
373
370
379
380
393
371

409
414
413
455
459
488
259
339
408


2.34 7.78 5.56 15.68 53 176 126 355


__
j I


53 176 126 355


-- j -- -- .


2.34 7.78 5.56 15.68


,




Appendix Table 11.--Variation in
contract, 23
July 1, 1970


hours of labor used per 1,000 chicks started in producing broilers under
large grower operations, Live Oak, Florida broiler producing area,
to June 30, 1971


Age
Grower A
of
number
grower


Broods
sold


Years Number


Chicks
started
per
brood
Number


83 30 5 48,226-
97 47 5 48,000
58 39 5 48,110
70 45 5 48,520
77 59 5 48,619
60 34 5 37,180
56 46 5 48,040
92 48 4 48,025
Average 44 4.88 46,810

53 40 5 49,955
87 36 5 36,090
90 50 5 48,040
96 57 4 72,750
57 33 4 47,988
91 50 5 40,800
95 54 5 52,860
63 55 4 36,038
Average 47 4.62 47,725


48,020
28,810
35,970
40,512
48,020
30,860


Labor used per 1,000 chicks started


Hired Operator


Hours

1.04
2.92
2.60
4.12
2.06
.86
3.12
9.64
3.20

6.67
4.52
4.58
1.83
5.36
.83
8.06
1.78
4.36

5.21
3.68
3.70
2.76
11.06
3.50


4 48,858 14.59


Average 440*
Average
all farms45a


4.71 39,875


4.74 45.021


6.79


4.58


Other
family


Hours Hours
Low third
2.74 5.62


6.38
7.03
4.40
6.60
4.49
4.89
2.58
4.96

1.96
5.87
6.83
3.94
6.98
6.30
7.38
10.53
5.90

5.98
8.30
7.34
7.67
6.75
6.19

8.04
7.10


5.87


.42
1.45
2.56
3.13
7.13
4.58
.42
3.12
Medium third
4.34
3.19
2.58
8.52
2.08
8.29

3.41
4.16
High third
4.83
4.89
5.89
7.21
1.75
9.92


4.59


3.89


9.40
9.72
11.08
11.08
11.79
12.48
12.59
12.64
11.28

12.97
13.58
13.99
14.29
14.42
15.42
15.44
15.72
14.42

16.02
16.87
16.93
17.64
19.56
19.61

22.63
18.48


14.34


Labor used per brood started


Total


Hours


50 132 271
140 306 20
125 338 70
200 214 124
100 321 152
32 167 265
150 235 220
463 124 20


150

333
163
220
133
257
34
426
64
208

250
106
133
112
531
108

713


206


232

98
212
328
287
335
257
390
380
282

287
239
264
311
324
191

393
283


146

217
115
124
620
100
338

123
198

232
141
212
292
84
306


453
466
533
538
573
464
605
607
528

648
490
672
1,040
692
629
816
567
688

769
486
609
715
939
605


-- 1,106


175


aOne farm had two operators.







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