LI B RAR.Y OF THE U N IVER.SITY OF 1LLI NOIS NOTICE: Return or renew all Library Materials! The Minimum Fee for each Lost Book is $50.00. The person charging this material is responsible for its return to the library from which it was withdrawn on or before the Latest Date stamped below. Theft, mutilation, and underlining of books are reasons for discipli- nary action and may result in dismissal from the University. To renew call Telephone Center, 333-8400 UNIVERSITY OF ILLINOIS LIBRARY AT URBANA-CHAMPAIGN L161 O-I096 POULTRY COSTS AND PROFITS A six -year study of general farm flocks and semi- commercial flocks By R. H. Wilcox and L. E. Card Bulletin 486 UNIVERSITY OF ILLINOIS AGRICULTURAL EXPERIMENT STATION Contents PAGE GENERAL FARM FLOCKS 5 Scope of Study 5 Size of Flocks and Farms 6 Financial Record of Average Flock 6 Amounts and Kinds of Feed Fed 9 Returns to Feed Fed 10 Returns to Labor 11 Unit Costs of Production 11 Poultry Enterprise a Definite Asset 12 SEMICOMMERCIAL POULTRY FLOCKS 14 Scope of Study 14 Average Expenses, Receipts, and Profit 14 Unit Costs of Production 17 Amounts and Kinds of Feed Fed 20 Man and Horse Labor 21 Factors Influencing Profits and Costs 24 How Profits Were Influenced by Four Efficiency Factors 32 Urbana. Illinois April, 1942 Publications in the Bulletin series report the results of investigations made or sponsored by the Experiment Station Poultry Costs and Profits By R. H. WILCOX and L. E. CARD' ROM POULTRY OWNERS and prospective poultry owners thruout Illinois have come demands for reliable information H- on the cost of and income from poultry production. Particu- larly has the need for such information been felt by those who are operating or who contemplate operating a semicommercial poultry farm, and an increasing number of people are each year going into this specialized business. The poultry industry, however, still depends on production from general farm flocks for the greater part of its poultry supplies, for 93 percent of all Illinois farms raise some poultry. The owners of these flocks also are interested in finding ways of reducing their costs and increasing their profits. This bulletin represents an effort to obtain specific information about the costs and profits of this business, that will meet the needs of both groups of poultry producers those whose flocks are merely a part of the farm, termed general farm flocks in this bulletin, and those whose flocks are operated as semicommercial units, termed semicom- mercial poultry flocks. The general farm flocks included in this study had an average of 106 birds, including growing stock, and the semi- commercial poultry flocks an average of 434 laying birds. The study was made during the six-year period, 1932-1937. Early in the period, during the depression, agricultural prices were at unprecedented lows and later in the period, when recovery began, they rose rapidly. Because the two types of enterprise are so differently handled and their relation to the farm and family economy is so different, they are treated entirely separately in this bulletin, and no attempt is made to compare them. A large part of the feed for typical general farm flocks of less than 150 hens is obtained from waste farm grains. These flocks are often cared for by unpaid family labor. Thus time and materials that might not otherwise be utilized are made to yield some return. The semicommercial poultry flocks, on the other hand, cannot make much use of waste farm grains. The semicommercial poultryman can seldom handle all his work with only the help of his family. His problem is either how to produce a superior product which will com- mand a premium on the market or how to keep his costs low by efficient management. *R. H. WILCOX, Associate Chief in Farm Management ; and L. E. CARD, Chief in Poultry Husbandry. BULLETIN No. 486 [April, The 158 general farm flocks studied were located in Champaign and Piatt counties in east-central Illinois. These flocks were typical of those of the area and, so far as could be ascertained from the 1935 Fig. 1 Poultry farms are most numerous in southeastern Illinois. Each dot repre- sents 10 farms on which 40 percent or more of the value of all farm products in 1929 came from poultry. (The black section indicates an area where such farms were too numerous to represent clearly by dots.) U. S. Census, they did not differ to any marked degree from farm flocks in the rest of Illinois (Table 1). The first semicommercial poultry flocks to be included in the study were located in southern Illinois, where many flocks contain 1,000 or more laying hens. In southeastern Illinois flocks with 400 or more laying hens are numerous (Fig. 1). In 1936 a group of flock owners in the Chicago area was added. Here too, as well as in the St. Louis area and near some of the smaller cities, flocks of 1,000 or more laying 1942} POULTRY COSTS AND PROFITS TABLE 1. GENERAL FARM FLOCKS: BIRDS PER FLOCK AND EGGS PRODUCED PER FLOCK, 1934 Section of Illinois Number of birds over 3 months old Number of eggs produced Northern' 102 dot. 570 Central . .... 93 463 Southern 1 " 99 551 Champaign and Piatt counties 98 479 Including Cook, DeKalb, DuPage. Kane, Lee, Rock Island, Whiteside, and counties north. b lncluding Bond, Clark, Cumberland, Effingham, Fayette, Madison, and counties south. hens are becoming more common. Flock owners near these cities sell most of their eggs locally, but in other sections of Illinois many of them ship to eastern markets. A total of 243 flocks was studied. The actual farm value of items of production was used in all records. Feed that was grown on the farm was charged at the farm price (market price less marketing cost). When feed was purchased, the amount paid for it was used in every instance. Adult labor was charged at 15 cents an hour, and the time children spent with poultry was converted into adult work hours according to each child's per- formance. Horse labor was charged at 10 cents an hour; the use of an automobile or truck was charged at 5 cents a mile. In the study of the semicommercial flocks all the items of feed, labor and overhead for buildings and equipment and all the cash expenditures were sepa- rated between the layers and the young stock. GENERAL FARM FLOCKS Scope of the Study The cost information on the general farm flocks was obtained in connection with a complete, detailed farm-cost study being conducted on the same farms. The records gave full cost and income figures for the whole poultry enterprise but did not give figures for the mature and young stock separately. Records were kept for the calendar year. Inventories of poultry, buildings, and equipment were made on each farm as near January 1 as possible. A large part of the cost and some of the income of the general farm flocks are noncash, for most of the general farm flocks in this analysis were maintained on feed grown at home, cared for in most instances by the owner's family, and often housed in the. landlord's buildings. Therefore if poultry had not been kept, a relatively large proportion of all the farm feed, family labor, and farm buildings that maintained the farm flock would not have been utilized and so would not have added to the farm income. 6 BULLETIN No. 486 [.April, The purpose of this cost and income analysis of general farm flocks, consequently, was not only to deal with costs and incomes in dollars and cents but also to measure the quantities of feed and labor utilized and the quantities of eggs and meat produced. Another purpose was to obtain such measures of enterprise efficiency as re- ceipts per unit of feed, per unit of labor, or per unit of capital. Costs of production fluctuated widely during the six years of this study because of the violent differences from year to year in the cost of feeds. For instance, in 1932 when the price of corn fed to poultry averaged 22 cents a bushel for the year, the gross cost of carrying 100 laying birds was $190; in 1934 when corn advanced to 56 cents a bushel, it rose to $271 ; in 1937 when corn advanced to 91 cents a bushel, it increased to $421 (Table 7). Poultry costs do not fluctuate to the same extent as do grain prices, however, for two reasons: (1) costs other than feed costs do not always move in the same way as feed costs; and (2) altho total feed costs per bird mount as the price of grain rises, they do not advance to the same extent as do grain prices because of the tendency under those circumstances for the owner to reduce the feed per bird. Size of Flocks and Farms The general farm flocks included in this study contained an average of 106 birds, including growing stock. The farms averaged 261 acres. The average annual value of eggs and meat sold, plus the increase in the poultry inventory and the value of the poultry and eggs used at home, totaled $287 per flock (Table 3), which was 5 percent of the gross farm income. Seventy-three percent of the flock income was derived from the sale of eggs and poultry. About one-fifth (19.9 percent) of it was in the form of poultry and eggs used by the operator and his family. The remaining 7 percent was increased inventory value and value of manure. Financial Record of Average Flock Capital investment. The annual fixed capital investment per flock averaged $293, or $2.79 per bird (Table 2). Capital in poultry buildings constituted 52 percent ; in poultry stock, 34 percent ; and in equipment, 14 percent. The average annual expense required to repair and maintain the fixed investment of buildings and equipment totaled $31 per flock. In addition to the cash items this expense figure includes interest on capital at 5 percent and annual depreciation of 3 percent on investment in buildings and 10 percent on investment in equipment. Receipts. When the cash value of eggs and meat used in the 1942] POULTRY COSTS AND PROFITS TABLE 2. GENERAL FARM FLOCKS: CAPITAL INVESTMENT Item 1932 1933 1934 1935 1936 1937 Six-year average Number of flocks 19 29 34 24 27 25 26 Number of birds per flock 127 113 101 94 106 96 106 Average number of eggs, dozens. . Investment per flock 909 $143 45 823 $141 38 682 $153 49 726 $149 29 674 $152 55 816 $167 08 789 $151 21 Equipment and supplies. 49 33 43 23 41 87 46 76 38 54 39 83 43 26 Poultry stock . . 121.27 90 87 72 05 81 .58 119.18 108 88 98 97 Total . . $314 $275 $267 $278 $310 $316 $293 Percent of investment in 46 51 57 54 49 53 52 Equipment and supplies . . 16 16 16 17 13 13 14 Poultry stock 38 33 27 29 38 34 34 Investment Per bird % 2 47 $ 2 45 $ 2 66 $ 2 94 $ 2 93 $ 3 30 $ 2 79 Per 100 dozen eggs 34.55 33.47 39.21 38.24 46.03 38.70 38 37 Building and equipment expense* Per flock $34 59 $28 11 $32 04 $27 94 $29 77 $30 95 $30 56 Per bird .27 .25 .32 .30 .28 .32 .29 Per 100 dozen eggs 3 81 3 42 4 70 3 85 4 42 3 79 4 00 Equipment consisted principally of feeding and watering utensils, brooder stoves, portable brooder houses, and other movable equipment. Supplies (a small portion of the total inventory) were brooder fuel, grit and oyster shells, disinfectants, and egg cases on hand at the beginning of the year. As these farm flocks had the free range of the farm, a definite land charge to be borne by poultry was not determined. home is included as part of the income from the farm flock, the aver- age annual flock income adds up to $298, or $2.81 per bird (Table 3). Meat 1 contributed 48 percent to this total; eggs, 48 percent; and manure, 4 percent. Many flock owners do not realize the extent to which the flock contributes directly to the living of the family. These families used annually an average of 201 dozen eggs from their flocks and 41 birds of varying ages and weights. The total value of this food was $59 (Table 3). The real income was distributed as follows between cash sales and home consumption of meat and eggs: 2 Meat sold 38 percent Meat used at home 7 percent Eggs sold 35 percent Eggs used at home 13 percent Expenses. The average total expense incurred annually in keep- ing an average of 106 birds was $288 (Table 4). This total includes the expenses of (1) producing or buying replacements; (2) feeding, housing, and caring for mature birds; (3) equipment and supplies 'During the same period the commercial flocks in this study got only 20 percent of their income from meat ; 75.7 percent from eggs ; 4 percent from manure; and .3 percent from custom hatching (see Table 10, page 16). "Increase in stock inventory and value of manure made up rest of real income. BULLETIN No. 486 TABLE 3. GENERAL FARM FLOCKS: RECEIPTS PER FLOCK Item 1932 1933 1934 1935 1936 1937 Six-year average Number of flocks 19 29 34 24 27 25 26 127 113 101 94 106 96 106 Average price per dozen 16 14 19 24 23 22 19 Receipts and inventory increases per flock Income from eggs $143 45 $107.77 8115.14 $171 98 $148 06 $174 10 $143 42 Egg sales 106.92 78.31 77.06 122.77 112.44 128.67 104 36 Eggs used in household . . . 36 53 29 46 38 08 49 21 35 62 45 43 39 06 113 01 90 33 127 64 169 41 162 65 196 06 143 18 Poultry sales 97 20 70 32 90 09 120 68 139 39 167 73 114 23 Poultry used in household . . . Increase in stock inventory . 15.81 20 01 13.42 24 13 20.92 27 81 23.26 28.24 09 20 28 8 67 Manure 12.55 12.20 11.32 10 31 10 88 11.89 11 52 Total . . $269 $210 $254 $352 $322 $382 $298 Unit receipts and inventory increases Per bird % 2 12 $ 1 87 $ 2 52 $ 3 73 $ 3 04 $ 3 99 $ 2 81 Per $100 worth of feed 383 262 233 266 216 185 240 Per $100 invested. 86 76 95 127 104 121 102 Per 100 hours of man labor . . . 83 70 92 137 121 138 107 Some receipts classified as meat are increases in the value of the birds in the closing inventory over their value in the opening inventory. used in brooding chicks and maintaining mature stock ; and (4) feed- ing cockerels and pullets to be sold as springers. The expense of producing replacement stock is included in Table 4. It covers rearing costs in addition to the cost of ( 1 ) eggs used for TABLE 4. GENERAL FARM FLOCKS: EXPENSES PER FLOCK Item 1932 1933 1934 1935 1936 1937 Six-year average Number of flocks 19 29 34 24 27 25 26 Number of birds per flock 127 113 101 94 106 96 106 Expenses and inventory decreases Buildings $10.67 $ 7.57 $ 9 12 $ 7.39 $ 6.40 $ 9.02 $ 8.36 8 22 6 77 9 55 10 08 7 86 6 14 8.10 Baby chicks, eggs, and hatching Feed 23.27 70 25 20.97 80 25 27.23 109 00 34.10 132 41 31.86 148 79 31.06 206 10 28.08 124 47 Decrease in stock inventory. 26 45 7 63 10 74 7 47 Man labor' 51.75 48.71 47.39 50.62 54.15 64.18 52.80 Horse labor* . 1 00 1 38 1 16 1 79 77 1 62 1.29 Automobile and truck" 1.75 3 24 2 08 1.87 5.66 2 28 2.81 Straw, bedding, and litter Miscellaneous expense .80 35 10 .74 33 69 3.28 37.12 2.54 33 55 3.20 40 43 3 96 44.98 2.42 37.48 Interest on capital at 5 percent Total 15.70 $245 13.77 $225 13.37 $259 13.88 $288 15 51 $325 15.79 $385 14.67 $288 Unit expenses and inventory decreases Per $100 income $91 $107 $102 $82 $101 $101 $97 Per $100 invested 78 82 97 105 105 122 98 Adult labor was charged at 15 cents an hour, horse labor at 10 cents an hour, and use of an automobile or truck at 5 cents a mile. Children's labor was converted into adult work hours according to each child's performance. 1942} POULTRY COSTS AND PROFITS TABLE 5. GENERAL FARM FLOCKS: AVERAGE ANNUAL RECEIPTS, EXPENSES, AND PROFITS Item 1932 1933 1934 1935 1936 1937 Six- year average 19 127 $269.01 244.96 $ 24.05 $ 51.75 75.80 324 $.23 29 113 $210.30 224.72 $-14.42 $ 48.71 34.29 301 $.11 34 101 $254.10 259 . 30 $-5.20 $ 47.39 42.19 277 $.15 24 94 $351.70 288.23 $ 63.47 $ 50.62 114.09 257 $.44 27 106 $321.59 325.37 $-3.78 $ 54.15 50.37 265 $.19 25 96 $382.05 385.13 $-3.08 $ 64.18 61.10 278 $.22 26 106 $298.12 287.95 $ 10.17 $ 52.80 62.97 284 $.22 Number of birds per flock Receipts and inventory increases Expenses and inventory decreases Profit Man labor* Total charge Return Total hours of man labor Return per hour of labor See footnote to Table 4. hatching, (2) chicks purchased, and (3) incubation of farm-produced eggs at commercial hatcheries. Home-grown feeds fed to both the laying flock and the replace- ment stock were charged at current monthly farm prices. The labor of a flock owner and his family was charged at current wages for hired help. Profits. In addition to poultry receipts large enough to pay farm prices for all feed fed, current wages for himself and his family, and 5 percent interest on his capital in buildings, equipment, and the flock, the owner of the average farm flock in this study had an annual profit of $10 during this period of severe depression and recovery, 1932- 1937 (Table 5). On most of the general farms studied, nearly all the gross receipts of $298 was a profit in the sense that it was a return from home-grown feed and family labor that without the poultry enterprise would prob- ably not have been utilized. Amounts and Kinds of Feed Fed A precise measure of farm grains consumed by poultry could not always be determined because nearly every general farm flock in the study was allowed free range of the entire farm. With this exception the amounts of feed that were used for general farm flocks were as shown in Table 6. An average of approximately 99 pounds of feed was fed per mature bird to maintain it, to produce replacement stock, and to feed the broilers, cockerels, friers, and pullets sold. Only in 1937 did an in- crease in the amount of feed fed appear to increase the egg production per hen. 10 BULLETIN No. 486 [April, TABLE 6. GENERAL FARM FLOCKS: FEED FED PER 100 HENS IN THE LAYING FLOCK (Figures represent quantities of feed fed to all the poultry on the farm divided by number of hundreds of hens in the laying flock) Kind of feed 1932 1933 1934 1935 1936 1937 Six-year average Grain Ib. 4 823 Ib. 5 913 Ib. 4 968 Ib. 5 214 Ib. 5 878 Ib. 6 829 Ib. 5 604 Oats 1 594 1 795 1 178 1 290 1 797 2 522 1 696 Wheat 1 999 849 876 784 313 582 901 Other 57 64 13 35 28 Total 8 473 8 621 7 035 7 323 7 988 9 933 8 229 Mill feeds Bran 17 3 44 177 191 193 104 Shorts . . 12 72 14 186 116 88 82 Middlings 6 111 198 112 184 102 Other 21 9 5 3 6 Total ... 50 90 169 566 422 465 294 180 238 453 644 569 807 482 Protein supplement Milk and buttermilk 2 487 1 906 3 996 2 085 2 276 2 250 2 449 236 181 380 198 216 214 233 311 261 204 519 220 191 284 Soybean meal 115 35 41 29 100 121 74 Other 239 81 73 50 101 161 117 Total 901 558 698 796 637 687 708 Minerals and grit 106 69 55 80 220 369 150 Condiments 7 8 2 (b) (b) (b) 4 .2 1 .1 Total feed 9 710 9 576 8 410 9 409 9 843 12 269 9 865 86 88 81 92 76 102 87 Skimmilk and buttermilk have been reduced to dry basis by multiplying the pounds of milk fed by .095 (Feed and Feeding, Morrison, pp. 978 and 988, 1936 edition). b The amount was less than .1 gallon. Corn was fed in larger amounts than any other feed; oats and wheat ranked second and third. Corn made up 68 percent of all the farm grain fed and 59 percent of all the concentrates. Oats made up 18 percent of all the concentrates fed, and wheat 10 percent. These three grains constituted 87 percent, by weight, of all the concentrates fed. However, milk and buttermilk were also important feeds, ap- proximately 3 gallons being fed annually per mature bird in the flock. Returns to Feed Fed When all the gross receipts are counted as the returns from the feed fed (or, stated another way, when feed is assumed to be the only cost), the poultry in this study usually made a good profit. When all labor is furnished by the farm family and no unusually heavy expense is incurred on poultry buildings and equipment, the receipts for $100 worth of feed at farm prices plus inventory increases are a safe measure of the success of the general-farm poultry enterprise. In these flocks the average annual receipts and inventory increases per $100 194Z] POULTRY COSTS AND PROFITS 11 worth of feed fed were $240 for the six years (Table 3). They were as low as $185 in 1937, when feed prices were high, and as high as $383 in 1932, when feed prices were low. Feed was the most im- portant item of cost (Table 4) ; it amounted to 43.2 percent of the gross cost. Returns to Labor With the exception of feed, labor is the largest item of expense in poultry production. Even when all the labor was furnished by the farm, it is interesting to know what the return for it actually was how much the operator of the farm received for the efforts he and his family and any hired labor put into the enterprise. In order to arrive at such figures, it is necessary first to charge against the business all the feeds used at their cost if purchased, at their farm price if farm-grown. When everything else which was used in the production of poultry except labor was charged at what those things would have cost at the local market, the net return averaged $63 a year per farm (Table 5). This may then be considered the return for the labor put into the enterprise, which was 284 hours a year, or 28 ten-hour man-days. As the major portion of the labor was furnished by the operator and his family, the poultry enterprise may be credited with having increased the family income by 22 cents an hour for the hours spent on it. The rate varied, however, from 11 cents in 1933 to 44 cents in 1935. Unit Costs of Production In determining the net costs of carrying a unit of birds or of producing a dozen eggs, three important items must be considered in addition to flock expenses; namely, mortality loss, income from sale of meat, and value of manure. 1. Mortality loss. A flock owner must start the year with enough extra hens to make up for a normal mortality loss, which in these flocks was 22 percent of the average number of hens. 1 He will have to charge the enterprise with the amount of this loss. 2. Income from sale of meat. When poultry are so fed and handled that the closing inventory plus sales is larger than the opening inventory plus mature stock purchases, the increase in value is considered a credit to the business and should be deducted from the gross costs. In Table 7 costs designated as per 100 laying birds include combined costs of hens and replacement stock. 3. Value of manure. This also should be deducted from the gross costs. Cost of carrying 100 laying birds. The average yearly net cost 'Average number of hens was determined by first obtaining the monthly average (average of number on hand the first of each month beginning with January and the close of each month), then adding these monthly averages and dividing by 12 to obtain the yearly average. 12 BULLETIN No. 486 [April, of carrying 100 laying birds was $128. Highest cost was $185 in 1937 and lowest was $94 in 1932. The detailed items making up these costs are given in Table 7. Feed was the most important item,; it amounted to $122 (42 percent of the gross cost, $289). Labor amounted to $50 (17 percent), build- TABLE 7. GENERAL FARM FLOCKS: ANNUAL COST OF CARRYING 100 LAYING BIRDS Item 1932 1933 1934 1935 1936 1937 Six-year average Operating expenses Eggs for hatching, hatching, and chicks 18.32 318.62 327 05 336 17 330 . 08 332.46 327.12 Mortality 17 96 14 11 12 90 16 18 23 89 18 83 17 31 Feed . 55 32 71 25 108 26 140 41 140 46 215 41 121.85 Man labor 1 40 75 43.25 47.07 53.68 51.13 67.08 50 49 Horse labor" 79 1 23 1 15 1 90 73 1 69 1 25 Auto, truck, and tractor* Buildings and equipment 1.38 14.87 2.87 12.73 2.07 18.55 1.98 18.52 5.35 13.46 2.39 15.84 2.68 15.66 Bedding, straw, and litter Miscellaneous .63 27 64 .66 29 92 3.26 36 87 2.69 35 57 3.02 38.16 4.14 47.01 2.40 35.86 Total 3177.66 3194.64 3257.18 3307 . 10 3306.28 3404.85 3274.62 Interest on capital at 5 percent Buildings and equipment 3 7 59 3 8 19 3 9 70 310 40 3 9 02 310 81 3 9.28 Stock 4.77 4 04 3 58 4.32 5.62 5.69 4.67 Total 5512.36 312.23 313.28 314.72 314.64 316.50 313.95 Gross cost $190 $207 $271 $322 $321 $421 $289 Deductions ?86 12 387 54 3139 68 3195 81 3167 31 3223 . 74 3150.03 Manure 9 88 10 84 11.24 10 94 10.27 12.43 10.93 Total $ 96.00 3 98.38 3150.92 3206 . 75 3117.58 3236.17 3160.96 Net cost $ 94 $108 $120 $115 $143 $185 $128 Per bird 94 1 08 1 20 1 15 1.43 1.85 1.28 Eggs produced per bird 86 88 81 92 76 102 87 Farm price of corn per bushel . . . 3 .22 3 .31 3 .56 3 .71 3 .73 3 .91 3 .50 See footnote to Table 4. ings and equipment, $16 (6 percent) ; interest on capital in stock, buildings, and equipment, $14 (5 percent) ; and all other expenses, $87 (30 percent). Cost of producing a dozen eggs. The net cost of producing a dozen eggs was 17.5 cents (Table 8). Eggs sold at an average of 19.4 cents a dozen. Sale of meat and flock appreciation amounted to 20.4 cents a dozen eggs. Poultry Enterprise a Definite Asset The records on general farm flocks for the six years 1932-1937, a period that included several severe depression years, show the follow- ing facts: The average flock returned to its owner a gross receipt of $240 annually for every $100 worth of feed fed and charged at local 1942} POULTRY COSTS AND PROFITS 13 farm prices. When all other items were charged at local market costs, the general farm flock returned to its owners 22 cents an hour in wages. It cost 17.5 cents to produce a dozen eggs that sold for 19.4 cents. While the flocks returned a very small profit when every cost was charged against the enterprise, they returned a substantial profit when TABLE 8. GENERAL FARM FLOCKS: COST OF PRODUCING A DOZEN EGGS Item 1932 1933 1934 1935 1936 1937 Six-year average Operating expenses Eggs for hatching, hatching, cents 2.56 cents 2.55 cents 3 99 cents 4 70 cents 4 73 cents 3 80 cents 3.72 Mortality 2.51 1.93 1.90 2.10 3.75 2.21 2.40 Feed 7.73 9 76 15 97 18 24 22 07 25 24 16 50 Man labor" 5.70 5.92 6.94 6.97 8.03 7.86 6.90 Horse labor* .11 .17 .17 .25 .11 .20 .17 Auto, truck, and tractor* Buildings and equipment .19 2.08 .39 1.74 .31 2.74 .26 2.40 .84 2.12 .28 1.85 .38 2.16 Bedding, straw, and litter .09 3.86 .09 4.10 .48 5.44 .35 4.62 .48 6.00 .49 5 51 .33 4.92 Total 24.83 26.65 37.94 39.89 48.13 47.44 37.48 Interest on capital at 5 percent 1.06 1 .12 1.43 1.34 1.42 1.26 1.27 Stock .67 .55 .53 .56 .88 .67 .64 Total . . . . . . 1 73 1 67 1 96 1 90 2 30 1 93 1.91 26 56 28 32 39 90 41 79 50 43 49 37 39 39 Deductions Sale of meat and stock 12 04 11 98 20 61 25 43 26 29 26 22 20 43 Manure . . . 1 38 1 49 1 66 1 42 1.62 1 .45 1.50 Total 13.42 13.47 22.27 26.85 27.91 27.67 21.93 Net cost 13.14 14 85 17.63 14.94 22.52 21.70 17.46 Price of eggs per dozen 16.0 13.6 18.6 24.5 22.7 22.1 19.4 86 88 81 92 76 102 87 See footnote to Table 4. it is considered that they provided returns from farm resources that would not otherwise have been utilized. Few if any livestock enter- prises made a better financial showing than did poultry during the depression years. The owner or the prospective owner of a general farm flock is of course interested in the efficiency of the poultry enterprise in compari- son with other farm enterprises. He should also be interested in the comparative efficiency of the poultry flock and other livestock in utilizing family labor, home-grown feed, and such farm buildings as he already has. The fewer the cash costs the more likely are farmers to consider the poultry enterprise an asset in their general farming business, especially since it is a year-around source of food for the farm family. 14 BULLETIN No. 486 [April, SEMICOMMERCIAL POULTRY FLOCKS Scope of the Study An increasing number of Illinois farmers are engaging in poultry production on a semicommercial basis; that is, they are obtaining on small farms the major part and on extensive farms a large part of their incomes from eggs and poultry. A study of poultry expenses and incomes on a group of these semicommercial poultry farms was made during the same years as the study of general farm flocks, 1932- 1937, and therefore under the same price-levels. These flocks con- tained an average of 434 laying birds, whereas the general farm flocks had an average of only 106 birds, including growing stock. Records on these semicommercial flocks were kept for the fiscal year beginning October 1, which is the approximate date when most Illinois poultrymen place their pullets in the laying house. 1 The in- ventory was based on a count of the different classes and ages of birds, and their market value in each class. The different classes consisted usually of hens over one year of age, pullets, cocks, cockerels, and market poultry. Thus the inventory value of the different classes of birds was affected both by changes in numbers and by fluctuations in the poultry market. Only poultry expenses and incomes are presented here. Returns from other kinds of livestock or crops produced on these farms have been disregarded. Even home-grown crops that were fed were charged to the flocks at local market prices. Average Expenses, Receipts, and Profit Capital investment. Total investment per farm in stock, land, buildings, equipment, and the miscellaneous feed and supplies on hand October 1 averaged $1,430, or $3.29 a hen (Table 9), for the six-year period. The average annual investment expense that is, the amount needed to keep the plant in usable condition and to cover 5 percent interest on the invested capital was 27 cents per hen or 2.5 cents per dozen eggs. Of the average annual fixed capital investment, 65 percent was in land and buildings and 27 percent in stock. Only the land and build- *A special poultry cost-accounting book printed in 1932 enabled owners of semicommercial poultry flocks to keep a detailed record of finances and manage- ment practices. Among these records were those on daily egg production, flock expenses and receipts, feeds fed, brooding and incubation expenses, and hen and young stock mortality. With this book a more detailed record on the young growing stock could be kept than with books kept by the owners of general farm flocks. 1942} POULTRY COSTS AND PROFITS 15 U w - 2 w < J u, 1 in X C i ON NO t^ Tf Tl- O Tf f^irj t^ >C OC * r^ CN ~ \o >o o> m ir. ". i/- -i O> * (^00 ocro < 16 BULLETIN No. 486 [April, f n SS2S SSS3S3 II 88S888888SS FE .i v .H > en cd O ^f 00 O <*) ^* T ^ O* O *"*! O *^> 00r^^ 3 f) **> O *O ^" 00 O ** (N iC O r*- O 00 w* A "5 SS2S SKSSiC^ 8 i/> ^* r** O CN *O eft eft ft IO at D " * 00 eft * ts ^0<0 OOt- *>*, j 3 g3SgS&SSS 5 0-* O'r-t^ 000 tSOiOO 5W5f5 M O (SvOvOOO OOtNvOOOOOf (ft tft eft s S O tft " - S s C/} !; s Ilii ijimj !;!! (d 00 | : :.S :::::: :S : ijj g : : : : : :g ::::::: : :1 f : : : : :| : : : : 1.: : i | . .| ..:... .g K k Ulm i ; :^-2 iSS co2 M Sn' ri-a fs ifijfifiiiij i ii 883 !lblliilP|i 8 af | j=> "2^ o w Sii B ^^Si i - S < o-5 s-s-s iiiilil^illel lass " >- u Af SaJ5jiJtan'sa so-- in ffi3Ji|jjiiir ijg 111 10 2 ss a'S^'S ZZZ K D E V " - ' .5 .j 10 t"3, c o~^ * "tJ O. rt . 3*0 c w "2 e'tj tto T)8c gmg.H QO^^^CO cl~ -S a a ~"3 1942] POULTRY COSTS AND PROFITS 17 ings actually used by poultry were considered as investment in this study ; the owner's house was not included. Receipts. Slightly over two-thirds of the average annual flock income was from market eggs. The total number of dozens sold per year, including a few hatching eggs, averaged 4,538. These eggs sold for $807 (Table 10), which means that the eggs sold per hen were worth a yearly average of $1.86. Other income, including inventory increases, poultry and eggs used in the house, and manure sold or credited, brought the yearly receipts to an average of $1,205 a flock, or $2.78 a hen. This income was equivalent to $803 for each $100 worth of labor put into the enter- prise, or to $84 for each $100 invested in stock, land, buildings, and equipment. Expenses. The total annual expenses per flock averaged $983. The largest single items were feed, $574, and labor, $150 (Table 11). The quantities of feed fed tended to increase as prices declined and to decrease as prices rose. The farm value of the corn fed to this poultry varied from an average of 28 cents a bushel in the year of lowest average feed prices (1933) to over three times that amount, 98 cents a bushel, in the year of highest average feed prices (1937). The total average feed cost per farm was also lowest in 1933 but that year it was well above one-third of the total feed cost in 1937. Chick expense, which included chicks bought, hatching eggs bought, and custom hatching, amounted to $86 ; and interest on the fixed capital in the business came to $71.50. The repairs, upkeep, and depreciation was $25 on buildings and $22 on equipment. Profit. A striking feature of these records is that they con- sistently show profits during years of high feed prices (1936 and 1937) as well as during years of low feed prices (1932 and 1933). The average annual profit for the six-year period was $222 (Table 12). This figure was obtained by deducting from the gross income not only all cash items of expense but also two important non- cash items interest on capital at 5 percent and current farm wage rates for the operator and his family. If the total of all expenses except wages is subtracted from farm income, the balance is the income to labor. The average income to hired and operator's labor per flock for the six years was $372, or 86 cents a hen (Table 12). Unit Costs of Production Net flock cost per 100 hens. The net flock cost on these poultry farms averaged $213 per 100 hens (Table 13). This figure includes feed, labor, and other expenses for replacement stock as well as for the 18 BULLETIN No. 486 [April, TABLE 12. SEMICOMMERCIAL POULTRY FLOCKS: AVERAGE RECEIPTS, EXPENSES, AND PROFITS OF ENTIRE FLOCK Item 1932 1933 1934 1935 1936 1937 Six- year average 21 20 37 36 63 66 40 510 510 430 422 357 376 434 Receipts and inventory increases Expenses and inventory decreases Profit $\ 138 954 $ 184 $1 078 828 $ 250 $ 993 860 $ 133 $1 473 1 094 $ 379 $1 185 950 $ 235 $1 366 1 212 $ 154 j51 205 983 $ 222 Man labor* Total charge $ 169 $ 170 % 146 $ 144 $ 135 $ 137 $ 150 352 420 279 522 370 291 372 See footnote to Table 11. mature birds, but it also includes as part of flock appreciation the income from the sale of broilers, cockerels, and pullets. The principal item of flock expense per 100 hens was feed, which averaged $138 a year during the six-year period. Seventy-two percent of this feed was purchased. Of next importance were man labor (daily TABLE 13. SEMICOMMERCIAL POULTRY FLOCKS: ANNUAL FLOCK COST OF 100 HENS INCLUDING REPLACEMENT STOCK Item 1932 1933 1934 1935 1936 1937 Six-year average Operating expenses Stock depreciation $ 6.15 $ .08 Baby chicks, eggs, and hatching Feed 17.00 85 94 $ 13.94 82 22 16.59 116 86 $ 21.39 166 59 $ 25.42 160 24 $ 27.77 215 51 $ 20.35 137.89 Farm-grown 21.88 23.00 40.13 46.15 44 72 54.36 38.37 64 06 59 22 76 73 120 44 115 52 161 15 99 52 Man labor" 33.13 33 31 33 98 34 03 37 85 36 35 34.77 Chores 26.00 26.13 27.32 26.47 31.52 29.30 27.79 7 13 7 18 6 66 7 56 6 33 7 05 6.98 Horse labor' 2.50 1.91 1 04 2 02 1 58 1.11 1.69 Auto and truck* 1.37 .35 .48 1.77 2.17 4.32 1.75 Buildings 6 45 4 49 5 38 5 98 6 84 6 10 5.87 Equipment 7.18 6.23 3.57 3.88 3 59 5.21 4.94 Straw, bedding, litter 1 73 1 38 1 42 2 42 3 57 3 26 2 30 Miscellaneous 8 01 4 07 5 22 6 09 5 99 4 62 5.67 Total $169.46 $147.90 $184.62 $244.17 $247.25 $304.25 $215.23 Interest on capital at 5 percent Land and buildings $ 11.50 $ 9.47 $ 9 98 $ 10 19 $ 12 13 $ 11 08 $ 10.72 Equipment .95 .99 .99 .83 .93 1.00 .95 Stock 4.77 3 56 4 19 3 80 5 58 5 62 4.59 Feed and bedding .44 .39 .18 .30 .25 .35 .32 01 04 03 .01 Total $17.66 $ 14 41 $ 15 34 $ 15 13 $ 18 93 $ 18.08 $ 16.59 Gross cost $187 $162 $200 $359 $266 $322 $232 Deductions $ 3 78 $ 25 77 $ 4 59 $ 8 85 $ 6.12 Manure $ 9.63 9 09 $ 11 05 12.26 13 50 15.24 11.79 Miscellaneous .52 .81 .41 1 .46 1.32 .58 .85 Total $ 10 15 $ 13 68 $ 11 46 $ 39 49 $ 19 41 $ 24.67 $ 18.76 Net cost $177 $149 $188 $220 $247 $298 $213 See footnote to Table 11. 1942} POULTRY COSTS AND PROFITS 19 TABLE 14. SEMICOMMERCIAL POULTRY FLOCKS: ANNUAL COST OF CARRYING 100 HENS Item 1932 1933 1934 1935 1936 1937 Six-year average Operating expenses Stock depreciation 3 19 08 % 14 23 $ 14 40 3 12 22 3 14 89 3 12 29 Mortality 19.67 14.03 16.62 $ 16.58 25.56 22.78 19.21 Feed 66 04 60 54 86 08 112 25 114 18 161 94 101 84 Farm-grown 17 69 17 24 31 91 39 03 34 50 45 32 30 95 Purchased 48.35 43.30 54.17 83.22 79.68 116.62 70.89 24 40 24 13 25 13 24 03 26 14 26 06 24 98 Chores 18 86 18 46 19.93 18.11 21 .40 20.17 19.49 5 54 5 67 5 20 5 92 4 74 5 89 5 49 Horse labor* 2 02 1 67 95 1 84 1.47 93 1.48 1 12 24 46 1 58 1 67 3 94 1 50 5 09 3 49 3 95 4 55 5 07 4 46 4.43 Equipment 5 74 4 70 2 16 2.44 2.10 3.55 3 45 Straw bedding, litter 1 29 96 1 16 1 88 2 86 2 58 1 79 6 22 3 47 3 96 4 55 4 05 3 20 4.24 Total 3150 67 3127 46 $154.87 3179.70 3195.32 3244.33 3175.21 Interest on capital at 5 percent $ 9 58 % 7.98 % 8 59 $ 8 13 3 9 46 3 8.49 3 8.70 Equipment .47 .34 .36 .28 .32 .40 .36 Stock 4.77 3.47 4.17 3.79 5.44 5.42 4.51 Bedding and litter ... 06 04 .03 .04 .04 .05 .05 Feed .38 .35 .15 .26 .30 .29 .29 01 04 .02 .01 Total % 15 26 $ 12 18 $ 13 30 3 12.51 $ 15.60 3 14.67 3 13.92 Gross cost $166 $140 $168 $192 $211 $259 $189 Deductions $ 1 05 $ 8 25 3 8 20 $ 9 53 10 42 3 10.98 3 12.93 3 10.05 Miscellaneous 14 .43 .48 .18 .20 Total $ 8.39 3 8.20 $ 9.53 3 11.90 3 11.46 3 13.11 3 10.25 Net cost $158 $131 $159 $180 $199 $246 $179 Farm price of corn per bushel . . . .34 .28 .52 .82 .66 .98 .69 See footnote to Table 11. chores and special work on poultry), $35 ; baby chicks, eggs for hatch- ing, and cost of hatching, $20; and interest at 5 percent on the capital in stock, buildings, and equipment, $16. Deductions averaging $18.76 for meat, manure, and miscellaneous items were more than enough to offset the 5 percent interest on invested capital. Net cost of carrying 100 hens. This cost for one year, without including any replacement costs, was $179 (Table 14). Highest cost items were: feed, $102; labor, $25; mortality, $19; and stock depreci- ation, $12. Total operating expenses were $175. Interest on the in- vested capital at 5 percent amounted to $14; credits for manure and miscellaneous items totaled $10. Net cost of producing a dozen eggs. Without including a re- placement charge, the average net cost was 16.6 cents a dozen eggs (Table 15). The four major items of cost were: feed, 9.5 cents; labor, 2.3 cents; mortality, 1.8 cents; and stock depreciation, 1.1 cents. As the average selling price was 19.8 cents a dozen (Table 15), the profit was 3.2 cents a dozen. 20 BULLETIN No. 486 {.April, TABLE 15. SEMICOMMERCIAL POULTRY FLOCKS: COST OF PRODUCING A DOZEN EGGS Item 1932 1933 1934 1935 1936 1937 Six-year average Operating expenses cents 1 63 cents 1 36 cents 1.37 cents cents 1 21 cents 1 34 cents 1 13 Mortality 1.69 1.34 1.58 1.52 2.53 2.06 1 79 Feed 5 66 5 79 8 17 11 21 11 30 14 61 9 46 Farm-grown 1.52 1 65 3 03 3 58 3 41 4 09 2 88 Purchased 4.14 4.14 5.14 7.63 7.89 10 52 6.58 2 08 2 30 2 38 2 20 2 59 2 35 2 32 Chores 1.61 1.76 1 89 1 66 2 12 1 82 1 81 Special 47 54 49 54 47 53 51 Horse labor* .17 .16 09 17 15 08 14 10 02 04 15 16 36 14 44 34 38 42 50 40 40 Equipment 49 .45 21 22 21 32 32 Straw, bedding, and litter .11 53 .09 33 .11 38 .17 42 .28 40 .23 29 .16 39 Total 12 90 12 18 14 71 16 48 19 33 22 04 16 25 Interest on capital at 5 percent 82 76 82 75 94 77 81 Fxjuipment . . 04 03 03 03 03 04 04 Stock 41 .34 40 35 55 49 42 Feed 04 03 01 02 03 02 02 Total 1 31 1 16 1 26 1 15 1 55 1 32 1 29 Gross cost 14 21 13 34 15 07 17 63 20 88 23 36 17 54 Deductions Stock appreciation 10 Manure .71 .78 .91 .95 1 09 1.17 .93 01 04 05 01 02 Total. 72 78 91 1 09 1 14 1 18 95 Net cost 13 49 12 56 15 06 16 54 19 74 22 18 16 59 Price of eggs per dozen 15 34 15 27 17 00 23 56 23 38 24 32 19 81 See footnote to Table 11. Net cost of producing 100 pullets. The average net cost of pro- ducing 100 pullets of laying age was $51 (Table 16). The value of the byproducts broilers, manure, and pullet eggs amounted to $40.42, and this amount was subtracted from the gross cost, $91.73, to obtain the net cost. In 1937, largely because of high feed costs, the gross cost for 100 pullets was $119 and the net cost $68. Gross costs were lowest in 1933, when they were $72. Net costs were lowest in 1934 ($37). Amounts and Kinds of Feed Fed The feed consumed per bird per year by the entire flock, based on the average number of mature birds in the flock, was 96 pounds, composed of the following: Feed Pounds Grain 56 Ready-mixed mash 28 Protein supplements 7 Of the grain 35 pounds was corn, 14 pounds wheat, and 4 pounds Feed Pounds Mill feeds 3.6 Minerals and grit 2 POULTRY COSTS AND PROFITS 21 oats. Milk and meat scraps were the common protein supplements (Table 17). The laying flock consumed an average of 75 pounds of feed per year per bird. Of the grain 28.5 pounds was corn, 11.5 pounds wheat, and 4 pounds oats (Table 18). Feed consumed by growing chickens averaged 28 pounds for each pullet raised and placed in the laying house. Of the grain 8.6 pounds was corn, 3 pounds wheat, 1 pound oats, and 1 pound other grains (Table 19). LAYING FLOCK Feed Pounds Grain 47 Ready-mixed mash 15 Mill feeds 6 Protein supplements 5 Minerals and grit 2 GROWING CHICKS Feed Pounds Grain 13.5 Ready-mixed mash 10 Mill feeds 3 Protein supplements 2 Minerals and grit 2 Man and Horse Labor Man labor, or its equivalent, performed by the operator's family and others averaged 1,000 hours per flock per year, 230 hours for each TABLE 16. SEMICOMMERCIAL POULTRY FLOCKS: COST OF PRODUCING 100 PULLETS Item 1932 1933 1934 1935 1936 1937 Six-year average Operating expenses Eggs for hatching 3 .59 % 5.97 $ 6.00 ? 4.49 3 3.28 % 3.39 1.83 1.68 1.67 .86 Chicks bought 20.02 $, 16.60 9.03 15.59 16.48 20.02 16.29 Fuel 3.49 2.80 2.71 2.84 3.16 3.28 3.06 Feed 27 68 30 71 40.60 56.68 51.24 66.75 45.60 Farm-grown 7.59 8.16 10.84 9.09 11.37 11.30 9.72 Purchased 20 09 22 55 29 76 47 59 39.87 55.45 35.88 Man labor' . 11 96 13 00 11.68 12.79 13.00 12.85 12.55 Chores 10.17 10.86 9.75 10.70 11.24 11.41 10.69 1 79 2 14 1 93 2.09 1.76 1.44 1.86 Horse labor, special" .85 .34 .13 .23 .12 .23 .32 Auto and truck" .53 .16 .02 .24 .56 .47 .33 Buildings 1 70 1 41 1 88 1 .83 1.97 2.05 1 .80 Equipment and supplies Straw, bedding, litter Miscellaneous 1.97 .55 1 36 2.17 .60 .84 1.85 .34 1 .66 1.84 .71 1.98 1.66 .79 2.03 2.08 .84 1.51 1.93 .64 1.56 Total $ 70.70 68.63 $ 75.87 102.56 3 97.18 115.03 % 88.33 Interest on capital at 5 percent ? 2 77 ? 2 12 ? 1.84 ? 2.64 $ 2.97 ? 3.23 ? 2.60 Equipment and supplies. . . . .70 1.05 .86 .71 .73 .77 .80 Total ? 3 47 ? 3 17 3 2 70 $ 3 35 % 3.70 % 4.00 J 3.40 Gross cost $ 74 $ 72 $ 79 $106 $101 $119 $ 92 Deductions Broilers and cockerels $ 26.03 ? 25.84 ? 39.88 % 39.20 % 42.24 ? 45.09 ? 36.38 Pullet eggs 3.80 1.66 2.68 1.36 2.01 1 25 2 02 2.36 2.81 2.89 2.22 Miscellaneous 1.33 .94 .50 .46 Total ? 28 04 $ 27 09 $ 41 90 % 46.69 $ 47.65 ? 51.16 % 40.42 Net cost $ 46 $ 45 $ 37 $ 59 $ 53 $ 68 $ 51 See footnote to Table 11. 22 BULLETIN No. 486 {.April, TABLE 17. SEMICOMMERCIAL POULTRY FLOCKS: FEED FED TO MATURE AND REPLACEMENT STOCK PER 100 MATURE BIRDS Item 1932 1933 1934 1935 1936 1937 Six-year average Grain Corn Ib. 3 569 Ib. 4 415 Ib. 3 469 Ib. 3 045 Ib. 3 407 Ib. 3 062 Ib. 3 494 Oats 363 356 243 245 651 833 448 Wheat 2 238 1 826 930 1 181 890 1 220 1 381 Other 170 3 133 378 732 315 289 Total . 6 340 6 600 4 775 4 849 5 680 5 430 5 612 Mill feeds 231 163 164 160 102 118 156 Shorts 35 34 34 74 98 76 58 176 90 101 73 102 108 109 Other 3 17 85 25 10 64 34 Total 445 304 384 332 312 366 357 2 017 1 213 3 112 3 428 3 296 3 560 2 771 Protein supplement Milk and buttermilk 117 241 120 153 469 365 244 367 296 193 206 159 152 229 Soybean meal 24 4 9 6 Other 232 223 172 199 109 261 199 Total 740 760 485 558 741 787 678 168 220 179 170 172 224 189 15 26 3 8 9 1 6 1 4 1 9 5 6 5 1 i Total feed 9 725 9 123 8 935 9 337 10 204 10 375 9 616 TABLE 18. SEMICOMMERCIAL POULTRY FLOCKS: FEED FED TO LAYING FLOCK PER 100 HENS Item 1932 1933 1934 1935 1936 1937 Six-year average Grain Corn Ib. 2 790 Ib. 3 504 Ib. 2 880 Ib. 2 526 Ib. 2 808 Ib. 2 579 Ib. 2 848 Oats 325 293 214 217 551 712 385 Wheat 1 892 1 570 769 966 694 982 1 146 Other 674 64 292 502 184 286 Total 5 681 5 367 3 927 4 001 4 555 4 457 4 665 Mill feeds Bran 194 112 134 80 83 104 118 27 23 29 80 86 57 50 Middlings 140 47 68 80 86 84 84 Other 572 239 756 320 325 369 Total 933 421 987 560 255 570 621 Mixed mash . . 863 493 1 327 1 965 2 172 2 118 1 490 Protein supplement Milk and buttermilk 56 207 97 322 107 239 171 285 235 156 168 119 127 182 Soybean meal 22 30 3 8 10 Other 238 179 165 159 69 243 176 Total 601 621 448 649 298 617 539 Minerals and grit 152 210 142 163 165 210 173 Condiments 21 25 10 5 4 7 12 Cod-liver oil, gallons 98 1 4 1 9 4 8 6 1 01 Total feed 8 251 7 137 6 841 7 343 7 449 7 979 7 500 Eggs per hen 140 131 149 131 121 133 130 1942} POULTRY COSTS AND PROFITS 23 TABLE 19. SEMICOMMERCIAL POULTRY FLOCKS: FEED FED TO GROWING CHICKS PER 100 PULLETS PLACED IN THE LAYING HOUSE Item 1932 1933 1934 1935 1936 1937 Six-year average Grain Ib. 1 121 Ib. 1 301 Ib. 777 Ib. 664 Ib. 666 Ib. 622 Ib. 858 Oats 55 89 38 69 111 199 94 Wheat 499 363 212 242 212 249 296 Other 95 4 84 111 129 172 99 Total 1 770 1 757 1 111 1 086 1 118 1 242 1 347 Mill feeds 53 73 40 31 21 26 41 Shorts 11 13 7 31 21 27 18 52 61 44 31 21 24 39 Other 205 241 326 309 134 87 217 Total 321 388 417 402 197 164 315 634 451 1 044 1 167 1 248 1 228 962 Protein supplement Milk and buttermilk 88 48 30 67 112 57 67 118 67 49 48 43 32 60 3 11 2 Other 80 85 61 56 44 61 65 Total 289 200 140 171 199 161 194 Minerals and grit 15 11 20 9 8 10 12 Condiments 5 5 3 2 1 2 3 .8 .1 .1 .1 .18 Total feed 3 034 2 812 2 735 2 837 2 771 2 807 2 833 100 hens, or .21 hour for each dozen eggs produced (Table 20). Four- fifths of the labor was utilized in feeding, gathering eggs, and per- forming daily chores with brooding chicks. One-fifth was spent in doing such special jobs as cleaning the house, plowing up the lots, building fences, and delivering eggs. Approximately 75 hours of horse labor was used per flock in TABLE 20. SEMICOMMERCIAL POULTRY FLOCKS: TIME SPENT IN CARING FOR POULTRY FLOCK Ite.ii 1932 1933 1934 1935 1936 1937 Six- year average Number of flocks 21 20 37 36 63 66 40 Number of liens per flock 510 510 430 422 357 376 434 Number of pullets produced 354 360 326 330 321 301 332 Number of eggs per flock, dozens. . 5 955 5 570 4 529 4 601 3 607 4 168 4 738 Total hours of man labor* 1 126 1 132 974 958 901 909 1 000 884 888 783 745 750 734 797 Special 242 244 191 213 151 175 203 Hours of man labor per unit* Per 100 hens 221 220 2">7 227 252 242 230 Per 100 dozen eggs 19 21 22 21 25 22 21 Hours of horse labor 127 98 45 85 57 42 76 See footnote to Table 11. 24 BULLETIN No. 486 {.April, plowing lots, moving brooder houses, and doing similar jobs. The time of men and horses used in hauling feed to be ground or hauling it from town to the farm was not charged to the poultry enterprise. Factors Influencing Profits and Costs It is obvious that larger profits can result only from increased in- come, reduced expense, or a combination of both. Farms which show a large profit are those on which costs are kept as low as possible without sacrificing quantity of production or quality of product. The records obtained on these semicommercial poultry farms make it possible to show the relationship between profits and such factors as the following: 1. Cost of feed 2. Cost of labor 3. Cost of stock replacement 4. Size of flock 5. Number of eggs per hen 6. Percentage of pullets in the laying flock Costs of feed and labor. The two largest costs in producing eggs are, of course, feed and labor. These costs fluctuated so violently that their true effect on profit can be given more accurately in terms of the average cost of producing a dozen eggs than in terms of cost per bushel of feed and cost per hour of labor. This relationship is shown for each of the six years in Table 21, which indicates that at the price levels existing during the period of this investigation and as an aver- age for the six-year period, a decrease of one cent in the cost of producing a dozen eggs meant about $27 more profit per flock. The same data are shown graphically in Fig. 2. Costs of feed can obviously be reduced by making liberal use of home-grown feeds, using feed hoppers designed to minimize wastage, and keeping enough hens to warrant buying in ton lots such ingredients TABLE 21. SEMICOMMERCIAL POULTRY FLOCKS: PROFIT PER FLOCK AS RELATED TO COST OF PRODUCING A DOZEN EGGS" Cast per dozen eggs 1932 1933 1934 1935 1936 1937 Profit per flock cents 5-14.9 * 211 -55 -201 $ 240 8 $ 193 -50 -317 $ 544 238 -95 -281 $ 334 189 -142 -146 -688 $ 444 144 -65 -531 -175 15-24.9 25-34.9 35-44.9 45-54.9 Figures in italics are based on the results from less than five flocks. Ordinarily the results from fewer than five flocks would be considered of little significance; but where the figures for the smaller groups show the same trend as the figures for the largergroups.it may be assumed that they also are a fair index of the relation between cost and profit. 1942\ POULTRY COSTS AND PROFITS 25 as meat scrap, bran, and middlings. They can be reduced by more efficient ways of doing certain jobs if special equipment and con- venient arrangement of buildings make it possible to care for 50 percent more hens with a given amount of help, more dozens of eggs will be produced per man, and a lower labor cost per dozen will result. Cost of replacements. At 1932-1937 price-levels and as an aver- age for the six-year period, a 10-percent increase in mortality during the years of this study increased the cost of producing eggs by about $600 400 200 -200 -400 -600 PROFIT AND EGG COST 1935 15 30 COST PER DOZEN EGGS-CENTS 45 Fig. 2 Large differences in profits resulted from small differences in cost. Every one-cent more a dozen in the cost of producing eggs meant a marked decrease in the profit per flock (see also Table 21). 2.5 cents a dozen and reduced the profit about $100 per flock, Table 22 shows. (See also Figs. 3 and 4.) Death losses among laying hens and pullets ranged from less than 10 percent to more than 50 percent. Mortality can be reduced by the following known methods: choosing long-lived hens that can lay from two to four years ; breed- ing from old hens and males that are sons of old hens, and from hens and males whose offspring have lived and laid well (difficult to do when all chicks are purchased annually) ; determining, if loss is due 26 BULLETIN No. 486 [.April, TABLE 22. SEMICOMMERCIAL POULTRY FLOCKS: PROFIT PER FLOCK AND COST OF PRODUCING A DOZEN EGGS AS RELATED TO PERCENTAGE OF MORTALITY OF HENS" Percentage of mortality 1932 1933 1934 1935 1936 1937 Profit per flock Under 14.9 $162 208 128 86 -44 $195 296 92 96 73 $191 54 -64 -60 21 $398 454 349 162 123 -21 $317 233 105 6 29 -136 $157 73 104 -25 45 16 15-19.9 20-24 9 25-29.9 30-39 9 Cost of producing a dozen eggs Under 14 9 10 97 11 14 11 55 15.15 15 47 20 76 15-19.9 8 .75 9.20 14.24 16.37 17.91 22.58 20-24 9 14 84 17 46 20 45 17 07 20 29 21 70 25-29 9 16 24 16 37 18 60 18.85 22 63 23.18 30-39 .9 17.15 14.00 15.50 19.78 22.40 24.84 40 and over 24.77 29.67 25 .88 See footnote to Table 21. TABLE 23. SEMICOMMERCIAL POULTRY FLOCKS: PROFIT PER FLOCK, COST OF PRODUCING A DOZEN EGGS, AND INVESTMENT PER HEN AS RELATED TO NUMBER OF HENS PER FLOCK* Number of hens 1932 1933 1934 1935 1936 1937 Profit per flock Less than 300 $117 35 350 -37 $120 216 264 70 $ 46 55 124 44 $173 428 406 323 $ 80 136 271 164 $ 8 110 243 292 300-499 500-699 700 and over Cost of producing a dozen eggs' Less than 300 cents 8.47 cents 10.07 cents 14.03 cents 16.49 cents 19.53 cents 23.24 300-499 15 09 8 75 15.45 15.67 19.00 20.44 500-699 10.06 11.18 13.63 17.31 19.01 18.95 700 and over 17.84 16.69 15 .95 21.68 23.36 24.19 Investment per hen Less than 300 $1.98 $2.87 $2.74 $3.41 $3.95 $3.30 300-499 2.75 1.78 2.41 2.31 2.68 2.64 500-699 1 .99 1.83 1.93 2.63 2.64 2.35 700 and over 4.36 3.75 3.68 3.70 3.98 3.14 See footnote to Table 21. 1942~] POULTRY COSTS AND PROFITS 27 4500 400 300 200 a. 100 -100 PROFIT AND HEN MORTALITY CENTS 30 25 - 20 N 15 O 10 EGG COST AND HEN MORTALITY 15 30 PERCENT MORTALITY 45 15 30 PERCENT MORTALITY 45 Fig. 3 Fig. 4 An increase of 10 in percentage of mortality was accompanied in three of the six years by a reduction of more than' $100 in flock profits and in all but two years by an increase of more than 2 cents a dozen in the cost of producing eggs. to a disease, just what the disease is and applying suitable control measures. If losses are due to "occupational disorders" of laying hens, the best procedure may be to replace the entire stock with a more vigorous strain. Size of flock. Six hundred appeared t'o be the most efficient number of hens for the semicommercial poultry flocks included in this study, none of which contained more than 1,000 hens. In five of the six years, flocks of about 600 hens showed a larger profit than flocks of 700 and over ; and in each year except 1935, flocks of 600 hens were more profitable than either of the two smaller size groups shown in Table 23. In three of the six years there were fewer than five flocks which had as many as 700 hens. When all the flocks are divided into three groups according to size, and the data analyzed on that basis, as in Fig. 5, the fact that the larger flocks returned less profit than the 600-hen flocks is not so apparent. One reason why the 600-hen flocks were most profitable is that the investment per hen was about half as great as in flocks of about 900 hens, and that in nearly every case the flocks of less than 300 hens had 28 BULLETIN No. 486 1 500 400 0300 ^200 100 PROFIT AND NUMBER OF HENS 1934 > 2.00 1.00 \ 1936 NUMBER OFHENS AND INVESTMENT PER HEN 1 300 600 900 AVERAGE NUMBER OF HENS 300 600 900 AVERAGE NUMBER OF HENS Fig. 5 Fig. 6 An increase in flock size tended to increase profits, but there was a depar- ture from this trend in three years of the study. In all years except 1932, flocks of about 400 hens had a lower investment per hen than did either larger or smaller flocks. a higher investment per hen than did the 600-hen flocks (Table 23 and Fig. 6). A second reason is that in most years the man-labor cost per hen was lower in flocks of about 400 and about 600 hens than in either larger or smaller flocks (Table 24 and Fig. 7). Studies of com- mercial poultry flocks in other states have shown that increasing the size of a flock above 1,000 hens brings increased profits, and this prin- ciple would probably also apply to Illinois commercial flocks. The effect of flock size on the cost of producing a dozen eggs was relatively small (Table 23 and Fig. 8). TABLE 24. SEMICOMMERCIAL POULTRY FLOCKS: MAN-LABOR COST PER HEN AS RELATED TO NUMBER OF HENS PER FLOCK* Man-labor cost per hen 1932 1933 1934 1935 1936 1937 Less than 300 $.185 $ 247 $ 271 $ 227 $ 302 $.271 300-499 257 215 246 216 241 230 500-699 . .240 233 233 253 256 .162 700 and over .262 .271 .266 .334 .279 .325 See footnote to Table 21. 1942} POULTRY COSTS AND PROFITS 29 Number of eggs per hen. The effect of egg production per hen on the profit per flock and on the cost of producing a dozen eggs is shown in Table 25 and Figs. 9 and 10. They reveal that at the price- levels prevailing during this study and as an average for the six-year period, an increase of 10 eggs per hen per year increased the flock CENTS LJ 30 < 20 NUMBER OFHENS AND LABOR COST 300 600 900 AVERAGE NUMBER OF HENS CENTS 30 24 - 18 Q. 12 EGG COST AND NUMBER OF HENS -1937 1936. 300 600 900 AVERAGE NUMBER OF HENS Fig. 7 Fig. 8 Man-labor cost per hen was lower in flocks of about 400 hens than in either larger or smaller flocks except in 1932. Flock size in all but two years had relatively little effect on the cost of producing a dozen eggs. profit by about $50 and reduced the cost of producing eggs by more than a cent a dozen. The general trend is the same for all years profits increased and costs decreased as the egg yield increased. Egg production can often be increased, of course, by liberal feeding of the right kind of feeds and by breeding hens that are genetically high producers. Percentage of pullets in laying flock. The ratio of pullets to hens in the laying flock had no consistent effect on either cost of production or flock profits (Table 26 and Figs. 11 and 12). A slight trend toward higher costs occurred as the percentage of pullets in- creased ; each 10-percent increase in the proportion of pullets added about 2 cents to the cost of producing a dozen eggs, altho considerable deviation from this trend was discovered in individual years. In gen- eral the flocks containing the higher percentages of pullets were some- what less profitable. 30 BULLETIN No. 486 {.April, TABLE 25. SEMICOMMERCIAL POULTRY FLOCKS: PROFIT PER FLOCK AND COST OF PRODUCING A DOZEN EGGS AS RELATED TO NUMBER OF EGGS PER HEN* Eggs per hen 1932 1933 1934 1935 1936 1937 Profit per flock Less than 109 9 f-141 $ 56 $-122 $ 68 $39 $-117 110-129.9 49 135 58 200 66 106 130-149 9 .... 165 279 180 294 239 98 150-169 9 97 337 196 406 436 179 566 426 816 430 Cost of producing a dozen eggs Less than 109 . 9 cents 19.62 cents 17.64 cents 19.93 cents 21.77 cents 24.00 cents 27.11 110-129 9 13.63 12 94 14 47 17 82 20 01 21 18 130-149.9 13.58 10.43 14.26 18 09 18 96 23 09 150-169.9 15.41 9.35 12.21 15.09 14 91 20 80 170 and over 6.68 8.53 12.53 16.71 See footnote to Table 21. $600 500 400 a: 200 -100 -200 PROFIT AND I EGGS PER HEN / / /^I936 H / /A-1933 1935 -I932 50 100 EGGS PER HEN 150 200 CENTS 30.0 225 15.0 1937 EGG COST AND EGGS PER HEN 50 100 150 EGGS PER HEN Fig. 9 Fig. 10 Ten eggs more per hen per year increased the flock profit by about $50 in four of the six years and reduced the cost of production by more than a cent a dozen in all years except 1935. 1942~] POULTRY COSTS AND PROFITS 31 TABLE 26. PROFIT PER FLOCK AND COST OF PRODUCING A DOZEN EGGS AS RELATED TO PERCENTAGE OF PULLETS IN THE LAYING FLOCK" Percent of pullets 1932 1933 1934 1935 1936 1937 Profit per flock Under 30... $-150 $409 $141 $-71 30-39.9 $151 $323 139 208 211 240 40-49.9 90 100 138 864 206 184 50-59 9 94 276 107 335 164 65 60-69.9 239 116 16 176 37 22 70-79.9 26 101 310 64 72 80 and over 176 40 280 117 83 Cost of producing a dozen eggs Under 30 . . cents cents cents 21.79 cents 18.13 cents 14.38 cents 25 26 30-39.9 5.84 6.90 12.93 17.20 16.05 25 .74 40-49 .9 ... 14 04 14 03 12 08 10 60 18 36 19 83 50-59.9 13.94 11.69 13.52 17.29 19 41 21 69 60-69.9 12.74 8.84 18.02 18.66 22.82 23.96 70-79.9 16 02 12 43 16 31 22 54 21 46 80 and over 9 57 17 .59 15.91 18.97 20.83 See footnote to Table 21. CENTS 30.0 225 15.0 7.5 EGG COST AND PERCENTAGE OF PULLETS 1937- 8300 25 50 75 100 PERCENTAGE OF PULLETS 225 - i- 150 - 75 PROFIT AND PERCENTAGE OF PULLETS 1937 1934 25 50 75 PERCENTAGE OF PULLETS 100 Fig. 11 Fig. 12 Flocks containing about 60 percent pullets tended to have the highest cost per dozen eggs in all but two years, but ratio of pullets to hens had no con- sistent effect on flock profits. 32 BULLETIN No. 486 When the flock size is being increased on an individual farm, the percentage of pullets will be higher than in an established business that has a uniform or constant size of flock. How Profits Were Influenced by Four Efficiency Factors The result of grouping the records of farms for all six years ac- cording to the number of important factors in which certain farms were better than most farms is shown in Table 27. Measurements used were: (1) size of flock, (2) eggs per hen per year, (3) laying flock mortality, (4) proportion of pullets in the laying flock. As has been indicated, on the basis of a single-factor difference the more profitable farms surpassed the average farm with 434 hens by having larger flocks (500 to 700 birds), higher egg production, lower flock mortality, or a smaller proportion of pullets. When all records for all years were combined, 22 farms were found which excelled in none of these four factors. These farms had an average net yearly profit of only $31. A net profit of $37 was the average for 72 farms excelling in one factor. Profits were definitely increased when farms excelled in two, three, and four of the measures. The average annual net profit for 87 farms excelling in two was $114; for 55 farms excelling in three, $274; and for 21 farms excelling in all four, $441. Net profit of individual farms in the different groups is also of interest. The highest net profit obtained by any one of the 22 farms which excelled in none of these measures was only $328 and the lowest "net profit" was a loss of $469. In striking contrast, the 21 farms which excelled in all four measures included one farm with a net profit of $988 and one with $85. The semicommercial poultry farms that were really profitable had (1) healthy hens which laid well and lived long, (2) a low enough percentage of pullets to avoid excessive replacement costs, (3) flocks of about 600 birds. How profitable flocks larger than 1,000 birds would have been was not shown in this study. TABLE 27. SEMICOMMERCIAL POULTRY FLOCKS: NET PROFIT OF FLOCKS AS INFLUENCED BY NUMBER OF FACTORS IN WHICH THEY EXCELLED (Four factors considered: size of flock, eggs per hen, mortality, proportion of pullets in laying flock) Number of factors in which flocks excelled Number of flocks Net profit per flock None 22 $ 31 One 72 37 Two . 87 114 Three 55 274 Four . . . 21 441 8.050 4-42 22394-S