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Economic Evaluation of Total Confinement and Open Range Turkey-Production Systems in Georgia
Economic Evaluation of Total Confinement and Open Range TurkeyProduction Systems in Georgia G. CHRIS LANCE Department of Agricultural Economics, College of Agriculture, University of Georgia, Experiment, Georgia 30212 (Received for publication October 8, 1982)
1983 Poultry Science 62:1142-1154 INTRODUCTION The mild climate of the Southeast provides certain cost advantages for turkey production over colder areas of the United States. Georgia turkey producers normally grow three flocks per year on open range for the summer and fall marketing periods. Total confinement turkey production was started in Georgia during the early 1970's to grow winter turkeys so that processing plants could operate year around. Both total confinement and open range production systems are now used by Georgia producers. Some producers still use open range production almost exclusively whereas others are growing entirely in total confinement. The primary types of turkey production systems used in Georgia are described. Production Systems. Turkeys have both brooding and growing stages. All brooding is done in confined housing similar to broiler houses. Turkey brooder houses are typically 12.2 m (40 ft) wide and vary in length from 76.2 to 121.9 m (250 to 400 ft). Brooder houses have metal insulated roofs with 8.9 cm (3.5 in) of fiberglass insulation, open sides with curtains, dirt litter floors, and are equipped with automatic feeders, drinkers, and gas
brooders. Poults are normally placed in brooder houses at the rate of .093 m 2 /bird (1 ft 2 /bird). Turkey poults are transferred at 6 to 8 weeks to either total confinement grow-out houses or open pasture ranges. Grow-out houses are typically of pole-type construction with 2.5 cm (1 in) of styrofoam in roofs, open sides with curtains, and dirt litter floors. Grow-out houses are usually 15.2 m (50 ft) wide and 122 or 152.4 m (400 or 500 ft) in length. Hens are housed at a rate of .232 to .278 m 2 (2.5 to 3.0 ft 2 )/bird and toms at .278 to .325 m 2 (3.0 to 3.5 ft 2 )/bird. Ranges should contain at least 6.1 ha (15 a) of well-drained range land with at least 25% woods shade to grow-out a flock of 10,000 turkeys. Forty range feeders and 40 tub waterers are required for 10,000 turkeys. Range feeder sizes vary from 227 to 454 kg (500 to 1,000 lb) of feed and are filled directly from feed auger trucks. Published information is limited on comparisons of physical and economic efficiencies between total confinement and range grow-out systems among regions of the US. Voss et al. (1976) reported that turkey production costs for all systems were slightly lower in the
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ABSTRACT An economic analysis of confinement and range turkey production systems was made for both torn and hen turkeys marketed in Georgia. Physical and economic differences were compared for total confinement and open range turkey production systems on a commercial scale. Georgia growers contract to grow a specified number of turkeys in total confinement to market in winter and spring months so processing plants can operate year-round. However, a larger number of turkeys are marketed during the summer and fall months. Many producers in parts of Georgia and other Southeastern states have changed from range systems to total confinement houses, which reduce any natural climatic advantages that the region has in open range production. This research revealed that total labor requirements are almost the same for the two systems. However, market weights for torn turkeys grown on range during the 1978 to 1981 period averaged .77 kg (1.7 lb) heavier with a .09 lower feed conversion than shown for total confinement flocks. Total production costs in 1981 excluding land and labor cost, with feed valued at $.22/kg ($.10/lb) for torn turkeys averaged $.0457/kg ($.0207/lb) lower for open range flocks than total confinement flocks. Performance records and cost analyses indicated that Georgia producers can grow both torn and hen turkeys to heavier weights more efficiently on open range than in total confinement for marketing during the summer, fall, and early winter months. (Key words: turkeys, production systems, open range, confinement, economics)
PRODUCTION SYSTEMS IN GEORGIA
MATERIALS AND METHODS
Data Collection. Performance data and cost records for 185 flocks with a total volume of 2.2 million birds grown over the 1978 to 1981 period were obtained from producers by personal interview. Investment costs, operating costs, labor requirements, propane usage, and electricity records were obtained from 50 producers. House construction and equipment purchase costs were obtained from 14 producers who either constructed or renovated brooder houses or grow-out houses during the 1979 to 1982 period (Tables 1 and 2). Production Performance. Physical performance rates on market weights, age of flocks, feed consumption, livability, and condemnation were first arrayed by the sex of the flock, the type of production system, and by seasons of the year, to determine variability among winter, summer and fall flocks within production systems. Labor. The turkey growers interviewed in the survey gave the daily time for each chore
required in brooding and grow-out operations (Lance 1982). Brooding labor averaged 22.5 man hours/1,000 birds for both torn and hen flocks. Grow-out labor for toms averaged 45.5 hr/1,000 birds in confinement and 46.5 hr/ 1,000 birds on open ranges. Grow-out labor for hens averaged 32.1 hr/1,000 birds in confinement and 31.6 hr/1,000 birds on range. Propane and Electric Use. Fuel records from 68 Georgia flocks brooded in all seasons of the year during the 1978 to 1981 period averaged 646.4 liters (171 gal) of propane/1,000 turkeys. Brooding fuel records for flocks grown on range averaged 431 liters (114 gal) of propane/1,000 turkeys. Full house brooding was practiced for all 68 flocks. Georgia growers reported using 189 kWh of electricity/l,000 turkeys during the 1980 to 1981 period. Georgia growers use electricity only for feeding and pumping water because electric lights and power ventilation are not used in open type houses in Georgia. Electricity requirements were approximately the same for confinement and range flocks. Cost Budgets. Cost budgets, comparing confinement and range grow-out systems for turkeys, were synthesized from the physical performance data, producer investment, and operating cost records. Building and equipment investment, poult, interest, energy, and other input cost rates prevalent in 1981 were incorporated into the budgets. Most of the growers that constructed brooding and growout facilities during the 1979 to 1982 period purchased equipment from suppliers and hired carpenter labor to construct the houses. Brooding and grow-out house construction costs would be somewhat higher if producers purchased turnkey jobs. Feed was budgeted at an average price of $.22 kg ($.10 lb) for comparison purposes. Labor cost rates were highly variable depending on whether family, hired, or contract labor was used. It was considered more relevant for the individual operator to use land, labor, and management costs that are peculiar to his personal operation. RESULTS
Physical performance rates from flocks grown during the 1978 to 1982 period were first arrayed by market weights for comparison of results from total confinement and range grow-out systems (Tables 3 and 4). Physical performances were also compared by seasons of
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Southeast than in the Midwest, and production costs were highest in the West. Lance (1973) reported that production costs for range flocks during 1972 in Georgia were more closely related to livability than any other factor. Jensen (1982) reported performance data including growth rates and feed consumption standards for all systems used in the US. Brooks (1981) reported variation in production and processing costs as related to sex of turkeys, rrlarket weights, and types of producers. Lance (1982) reported brooding labor and grow-out labor requirements for both total confinement and range grow-out systems in Georgia. Economic studies are needed to evaluate the relative efficiencies between total confinement and range grow-out systems for both torn and hen turkey flocks. Turkey growers can use this information to help determine the most profitable number of confinement and range birds to grow under existing market conditions and with individual farm restrictions. Turkey growers can also use such information for long range plans on expansion possibilities for total confinement and range production. This study will also provide a basis for comparing the potential of commercial operations in regional production and for comparing the efficiency of commercial flocks with research flocks.
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15.2 X 122.0 (50 X 400 ft) 6 ha (15 a)
3,708.8 (40,000 ft 2 ) 10,000 e
12,000 toms/ 16,000 hens
12,000 e
(no. birds)
1,116.3 (12,000 ft 2 )
(m 2 )
(m)
12.2 X 91.5 (40 X 300 ft)
Capacity
Area
House size
1,940
67,200
18,720
Construction
The same capacity was usually used for toms and hens.
Range investment included stock wire, posts, water pipe, 453.5 kg (1000 lb) feeders, and drinkers. Feeders and d started. Range land in Georgia was renting in 1982 for approximately $62/ha ($25/a).
Conventional open side houses with insulated roofs. Equipment included automatic adult turkey feeders, drinker two grow out houses.
Conventional open side house with insulated roof. Equipment included gas brooders, automatic poult feeders, and curtains. Brooder house for 16,000 hen poults 12.2 X 122.0 m (40 X 400 ft) cost $38,400.
Source: 1981 to 1982 turkey farm survey. House construction based on costs from 14 producers included grading, g
j
Range d
1
2
0
No.
Grow-out house e
Brooder house
Type facility
TABLE 1. Turkey house, equipment, and range construction costs, Georgia,
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PRODUCTION SYSTEMS IN GEORGIA
the year to determine if production variability is more closely related to production systems or seasonal factors (Table 5). The feed conversions discussed next will reflect total conversions after condemnation losses were deducted from the market weights. Physical Performances Tom Flocks, Feed conversions by market weight ranges for torn flocks were highly
Item
No.
Initial cost
Repairs
t^\...
Well and pump Farm tractor^ Front end loader Spreader truck Feed truck Sprayer Pickup truck 0 Mower Farm trailer Turkey loader Scrape blade Loading fans Feed auger wagon Total
\*>
107 246 98 350 800 51 307 88 10 50
2,518 1,358 1,314 3,500 28,000 693 2,280 813 2,080 12,750 208 800 1,100 57,414
60 2,167
Annual fixed cost
Annual total cost
Cost 1,000 turkeys
Depreciation — \W >d Interest — 15% e Repairs Insurance' Taxesg Total annual cost
5,741 4,306 2,167 861 344 13.419
] ]I ] 1 ]L I
l
I I
Source: Georgia survey.
1981 to
57.41 43.06 21.67 8.61 3.44 134.19
1982 turkey farm
Average price reported for used tractor was $5,430 (25% charged to turkey operation). Average price reported for used 907 kg (V4 ton) truck was $4,560 (50% charged to turkey operation). Depreciation computed over 10 years by straight line method. Interest computed on average amount of loan over 10 years at 15%/yr. f Insurance cost estimated to be 1.5% of average purchase price. ^Taxes estimated for 40% of average value over 10 yr at 30 mills.
variable over the study period (Table 3). Market weights within the two production systems were closely related to age, but feed conversions appeared to be more closely related to livability and condemnation losses. Market weights from open range flocks averaged .77 kg (1.7 lb) heavier and feed conversions averaged .09 less when compared with total confinement flock results. Ages of range flocks averaged 22.1 weeks and confinement flocks averaged 21.3 weeks. Livability and condemnation losses were lower in the total confinement system. Greater mortality losses are expected from open ranges flocks due to predator losses. The growers reported that the more efficient flocks were sometimes grown to heavier market weights than the poorer performing flocks. Sufficient flock records were available to array the physical performance data into a winter and a combined summer to fall period to reflect the major seasonal weather variations in Georgia (Table 5). Flock records for confinement torn flocks indicated little seasonal variation in market weights and feed conversions. However, livability for confinement birds was 2.9% higher in winter flocks than in summer and fall flocks. Range flocks marketed in the summer and fall averaged 1.04 kg (2.3 lb) heavier with a .09 lower feed conversion rate when compared to total confinement birds marketed during the same season. Average ages during this period were 22.2 weeks for range flocks and 21.4 for confinement flocks. Hen Flocks. Feed conversions were even more closely related to livability for the two hen grow-out systems than was reflected in the torn flock records (Table 4). Livability was 3.7% greater for hen flocks grown on open ranges and condemnations were .3% lower than shown for hens housed in total confinement. Market weights for hens grown on open ranges averaged .63 kg (1.4 lb) heavier with a .2 lower feed conversion rate than shown for the total confined hen flocks. The hen flock records indicated more seasonal variability in performance for flocks grown in total confinement than shown for torn flocks (Table 5). The largest and most efficient confinement flocks were marketed in the fall. However, range flocks marketed in the fall season were .41 kg (.9 lb) heavier with a .16 lower feed conversion rate when compared to confinement flocks marketed in the fall.
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TABLE 2. Initial investment and annual costs for supplemental equipment, 100,000 turkey operation, independent growers, Georgia, 1981"
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to to to to to
(week)
(no. birds)
22.1
11,280
35
f
a
12.93
11.70 11.97 12.56 12.83 13.33 14.06
12.15
11.52 12.06 12.34 12.88 13.42
(kg)
(28.5)
(25.8) (26.4) (27.7) (28.3) (29.4) (31.0)
(26.8)
(25.4) (26.6) (27.2) (28.4) (29.6)
(lb)
Market weight
Condemnations also include weights of dead birds delivered to processing plants.
Computed after condemnations were deducted from total weights delivered to processing plants.
Computed before condemnations were deducted from total weights delivered to processing plants in South Carolina
Turkeys are started in brooder house, 0 to 8 weeks, and moved to open pasture grow-out ranges, 8 to 22 weeks.
Turkeys are started in brooder houses, 0 to 8 weeks, and moved to confinement grow-out houses, 8 to 22 weeks.
Source: 1981 to 1982 turkey farm survey.
Average
20.7 21.3 21.6 21.8 22.3 23.5
12,044 8,289 10,500 8,905 15,067 12,895
4 8 3 5 5 10
26) 27) 28) 29) 30) 30)
21.3
8,669
25
Average
Open range systems 0 11.34 to 11.79 11.79 to 12.24 12.24 to 12.70 12.70 to 13.15 13.15 to 13.61 Above 13.61
20.9 21.6 21.3 21.4 22.2
Age
Flock size
11,059 6,562 6,400 6,164 7,786
26) 27) 28) 29) 30)
(no.)
Flocks
11 4 3 3 4
(25 to (26 to (27 to (28 to (29 to (above
(lb)
(25 (26 (27 (28 (29
0
Turkey weight ranges
Confinement systems 11.34 to 11.79 11.79 to 12.24 12.24 to 12.70 12.70 to 13.15 13.15 to 13.61
(kg)
Type of system
TABLE 3. Average torn turkey production performance by selected market weight groups, confinement, and range
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46
16.6 17.3 17.6 18.2 17.6
10,782 10,270 13,576 11,014 12,240 6.98
6.08 6.71 7.07 7.48
6.35
5.67 6.12 6.58 7.03
(kg)
(15.4)
(13.4) (14.8) (15.6) (16.5)
(14.0)
(12.5) (13.5) (14.5) (15.5)
(lb)
Markett weight
Computed before condemnations were deducted from total weights delivered to processing plants in South Carolina
Turkeys are started in brooder house, 0 to 8 weeks, and moved to open pasture grow-out ranges, 8 to 18 weeks.
Turkeys are started in brooder houses, 0 to 8 weeks, and moved to confinement grow-out houses, 8 to 18 weeks.
Source: 1981 to 1982 turkey farm survey.
14) 15) 16) 17)
17.6
16.7 17.2 18 18.5
(weeks)
Age
Computed after condemnations were deducted from total weights delivered to processing plants. f,Condemnations also include weights of dead birds delivered to processing plants.
c
a
Average
to to to to
6 5 24 11
(13 (14 (15 (16
13,656
79
Average
13) 14) 15) 16)
Open range systems 0 5.90 to 6.35 6.35 to 6.80 6.80 to 7.26 7.26 to 7.71
to to to to
(no. birds)
Flock size
14,448 12,477 14,771 12,558
(12 (13 (14 (15
(no.)
Flocks
13 25 29 12
(lb)
(kg)
Turkey weight ranges
Confinement systems'5 5.44 to 5.90 5.90 to 6.35 6.35 to 6.80 6.80 to 7.26
Type of system
TABLE 4. Average hen turkey production performance by selected market weight groups, confinement, and range g
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Source: 1981 to 1982 turkey farm survey.
hens hens hens hens
(lb) (25.8) (26.2) (28.5) (14.3) (13.0) (13.9) (14.8) (15.7)
(kg) 11.70 11.88 12.93 6.49 5.90 6.30 6.71 7.12
(weeks) 20.8 21.4 22.2 17.3 16.9 18.0 18.2 17.7
(no. birds) 8,992 9,669 11,807 13,162 13,702 12,433 14,343 14,299
17 14 34 19 18 20 21 35
(no.)
Weight
Market
Age
Size of flock
Flocks
f
e
Condemnations also include weight of dead birds delivered to processing plants.
Computed after condemnations were deducted from total bird weights delivered to processing plants in South Carol
Computed before condemnations were deducted from total bird weights delivered to processing plants in South Car
Flocks marketed in December were also included in the fall average for range toms and range hens.
Seasons reflect months that turkeys were marketed (winter months: Dec, Jan, and Feb; spring months: Apr, May fall months: Sept, Oct, and Nov).
a
Winter Summer and fallc Summer and fall c Winter Spring Summer Fall FaIIc
Confinement Confinement Range toms Confinement Confinement Confinement Confinement Range hens
toms toms
Season sold 0
Production system
TABLE 5. Average seasonal turkey production performance rates for confinement and range sys
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PRODUCTION SYSTEMS IN GEORGIA Production
Costs
Average production costs derived from the flock performance records and producer cost records were illustrated in bugets for both total confinement and open range flocks (Tables 6, 7, 8, and 9). Average costs grouped into the main cost factors were summarized for comparison of grow-out systems in Table 10. Cost differences for total confinement flocks and open range flocks are discussed separately below for toms and hens.
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Toms. Building and equipment depreciation and interest costs averaged $.0267/kg ($.0121/ lb) for total confinement flocks and $.0128/kg ($.0058/lb) for open range flocks (Table 10). Supplemental equipment cost and turkey hauling cost totaled $.0335/kg ($.0152/lb) for confinement flocks and $.0333/kg ($.0151/lb) for the open range flocks. Propane brooder fuel and electricity cost averaged $.0117/kg (.0053/ lb) for confinement flocks and $.0079 kg ($.0036/lb) for range flocks. Feed cost valued at $.22/kg ($.10/lb) averaged $.0205/kg
Cost item
Unit
Quantity used
Cost
Cost
Cost
per
per kg
per lb
turkey
Rate
{
W
Poults* Feed a Brooder house Depreeiationb Interest 0 Grow-out house depreeiationb interest 0 Supplemental equipment" Propane Electricity Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital e Laborf Total cost, excluding land, labor, and management
no.
kg/bird
48,000 39.14
\f)
^
.22
1.19 8.62
9.99 72.34
4.53 32.81
1.04
$/yr $/yr
1,607 1,871
.13
.04 .05
.33 .42
.15 .19
$/yr $/yr
4,241 5,226
.10 .13
.84
.13
1.08
.38 .49
$/l,000 birds liters/1,000 birds kWh/1,000 birds $/l,000 birds $/l,000 birds $/yr $/l,000 birds $/l,000 birds S/lb $/l,000 birds $/bird hr/1,000 birds
134 646 189 38 68
.20
.055
1,049 40 40 .01 10
10.46
.15
.13 .13 .01 .04 .07
1.08 1.08 .09 .33 .60
.49 .49 .04 .15 .27
.03 .04 .04 .27 .01
.24 .33 .33
.11 .15 .15
2.27
1.03
.09
.04
.39
3.26
1.48
11.30
94.70
42.95
68
Source, Table 3; turkeys started in four batches of 12,000; market weight, 12.15 kg (26.8 lb); age, 21.3 week; livability, 89.1%; condemnation, 1.81%; feed conversion, 3.28 kg (lb) after condemnations were deducted. Source, Table 1; houses depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest computed at 13% on the average amounts of building investment for 20 yr and equipment investment for 15 yr. Source, Table 2. f
Interest on operating capital computed over 3 months/flock at 15% annual rate. Total labor required to brood and grow-out 41,899 torn turkeys was 2,849 hr.
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TABLE 6. Average annual production costs, 41,899 torn turkeys grown in confinement houses, by independent producers, Georgia, 1981
LANCE
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($.0093/lb) lower for flocks grown on open ranges than for flocks grown in total confinement houses. Total production cost for open range flocks excluding land and labor costs averaged $.0457/kg ($.0207/Ib) lower than total cost for confinement flocks. Hens. Building and equipment depreciation and interest costs averaged $.0384/kg ($.0174/ lb) for total confinement flocks and $.0232/kg ($.0105/lb) for open range flocks. Supple-
mental equipment and turkey hauling costs totaled $.0432/kg ($.0196/lb) for total confinement and $.0421/kg ($.0191/lb) for open range flocks. Propane fuel and electricity averaged $.0223/kg ($.0101/lb) for confinement flocks and $.0148 kg ($.0067/lb) for range flocks. The feed costs of $.6121/kg ($.2776/lb) for the range flocks was $.0503/kg ($.0228/lb) lower than the average feed cost shown for the total confinement flocks. Total
TABLE 7. Average annual production costs, 31,356 torn turkeys grown on open ranges by independent producers, Georgia, 1981
Unit
Poults 3 Feed a Brooder house Depreciation 0 Interest 0 Range depreciation^ Range interest e Supplemental equipment' Propane Electricity Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital? Labor"
no.
Cost
Cost
Cost
per
per kg
per lb
turkey
Rate (%)
kg/bird $/yr $/yr $/yr $/yr $/l,000 birds liters/1,000 birds kWh/1,000 birds $/l,000 birds $/l ,000 birds $/yr $/l,000 birds $/l,000 birds $/lb $/l,000 birds $/bird hr/1,000 birds
36,000 40.32
1.04 .22
1,607 1,871
.13
982 737
.15
134 431 189 15 68
.20
.055
1,049 40 40 .01 10
10.75
.15
W
1.22 8.89
9.64 70.27
4.37 31.87
.05 .06 .03 .02
.40 .49 .24 .15
.18 .22 .11 .07
.13 .09 .01 .02 .07
1.04 .71 .09 .15 .55
.47 .47 .04 .07 .25
.03 .04 .04 .29 .01
.24 .31 .31
.11 .14 .14
2.29
1.04
.09
.04
.40
3.15
1.43
11.44
90.12
40.87
69
Total cost excluding land, labor, and management . . . .
Source, Table 3; turkeys started in three batches of 12,000: market weight, 12.93 kg (28.5 lb); age, 22.1 week; livability, 87.1%; condemnation, 2.13%; and feed conversion, 3.19 kg (lb) after condemnations were deducted. Source, Table 1; brooder house depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest computed at 13% on the average amounts of brooder house investment over 20 yr and equipment investment for 15 yr. Source, Table 1; Cost of labor and materials to construct three ranges was used. Feeders and waterers are transferred among ranges. Costs were depreciated over 10 yr by straight line method. f
Interest on average amount of range construction and equipment loan over 10 yr was computed at 15%/yr. Source; Table 2.
''Interest on operating capital computed for 3 months/flock at 15% annual rate. Total labor to brood and grow-out 31,356 torn turkeys was 2,164 hr.
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Cost item
Quantity used
PRODUCTION SYSTEMS IN GEORGIA p r o d u c t i o n costs excluding land and labor of $.8604/kg ( $ . 3 9 0 2 / l b ) for t h e open range flocks was $.0964/kg ( $ . 0 4 3 7 / l b ) less t h a n t o t a l cost of c o n f i n e m e n t flocks.
DISCUSSION T h e t u r k e y i n d u s t r y in p a r t s of Georgia and o t h e r Southeastern states is moving rapidly toward total confinement turkey production, a l t h o u g h it m a y n o t be t h e m o s t economical system. Some have assumed t h a t range pro-
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d u c t i o n advantages were not sufficient t o justify t h e e x t r a difficulty and labor incurred in range p r o d u c t i o n . However, t h i s research has revealed t h a t t h e t o t a l labor r e q u i r e m e n t s are almost t h e same for t h e t w o p r o d u c t i o n syst e m s . Range flocks require m o r e daily t i m e , b u t t h e additional t i m e required t o clean o u t and replace litter and e q u i p m e n t in grow-out houses m a k e s t o t a l labor r e q u i r e m e n t s almost equal. Flock p r o d u c t i o n records a n d cost b u d g e t s s h o w t h a t Georgia producers can grow heavier
Cost item
Unit
Quantity used
Poults a Feed a Brooder house Depreciation" Interest 0 Grow-out house Depreciation^ Interest 0 Supplemental equipment" Propane Electricity Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital e Labor*
no. kg/bird
64,000 18.78
houses,
Cost per turkey
Cost per kg
68 22
.77 4.14
12.33 66.24
5.59 30.04
Rate
($)
< irt
\t)
$/yr $/yr
2,144 2,496
13
.04 .04
.64 .64
.29 .29
$/yr $/yr
4,241 5,226
13
.07 .09
1.12 1.43
.51 .65
.13 .13 .01 .04 .07
2.07 2.07 .15 .64 1.12
.94 .94 .07 .29 .51
.02 .04 .04 .14 .01
.33 .64 .64 2.25 .15
.15 .29 .29 1.02 .07
.20
3.20
1.45
5.98
95.66
43.39
$/l,000 birds liters/1,000 birds kWh/1,000 birds $/l ,000 birds $/l,000 birds $/yr $/l,000 birds $/l,000 birds $/lb $/l,000 birds $/bird hr/1,000 birds
Total cost excluding land, labor, and managemen t
Cost per lb
134 646 189 38 68
20 055
1,049 40 40 01 10 5.41 55
15
Source, Table 4; turkeys started in four batches of 16,000 poults in 12.2 X 121.9 m (40 X 400 ft) house; market age, 17.6 weeks: market weight, 6.35 kg (14 lb); livability, 89.3%; condemnation, 1.54%; and feed conversion, 3.01 kg (lb) after condemnations were deducted. When poults are available, 5 batches/yr of hens can be grown. Source, Table 1; houses depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest computed at 13% on the average amounts of building investments over 20 yr and equipment investments over 15 yr. Source, Table 2. Interest on operating capital computed over 3 months/flock at 15% annual rate.
f Total labor required to brood and grow-out 57,152 hen turkeys was 3,143 hr.
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TABLE 8. Average annual production costs, 57,152 ben turkeys grown in confinement by independent producers, Georgia, 1981
LANCE
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and more efficient turkeys on open range than in confinement houses for the summer and fall market. Georgia's most efficiently produced turkeys from summer and fall ranges are marketed during the peak demand Thanksgiving and Christmas seasons. Hen turkeys are grown more efficiently than toms; however, some Georgia producers are
paid a premium for heavy torn turkeys marketed for further processing during the summer and fall seasons, so it is more profitable to grow heavy toms on open range and hens in confinement for summer and fall markets when price premiums for toms are sufficient to offset the production cost advantage of hens. The more efficient cost advantages of open range
TABLE 9. Average annual production costs, 33,480 hen turkeys, grown on open ranges by independent growers, Georgia, 1981
Unit
Rate
Cost
Cost
Cost
per
per
turkey
kg
per lb (,t\
($) a
Poults Feed a Brooder house Depreciation^ Interest 0 Range depreciation" Range interest e Supplemental equipment' Propane Electric Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital? Labor h
no.
kg/bird $/yr $/yr $/yr $/yr $/l,000 birds liters/1,000 birds kWh/1,000 birds $/l,000 birds $/l,000 birds $/yr $/l,000 birds $/l,000 birds $/lb $/l,000 birds $/bird hr/1,000 birds
36,000 19.14
.68 .22
1,607 1,871
.13
982 757
.15
134 431 189 15 68
.20
.055
1,049 40 40
0 0 .01
10
5.47 54.1
.15
Total cost excluding land, labor, and management
(
4.22
10.74 61.21
4.87 27.76
.05 .06 .03 .02
.73 .86 .44 .29
.33 .39 .20 .13
.13 .09 .01 .02 .07
1.90 1.32 1.01
.86 .60 .07 .13 .46
.03 .04 .04 .16 .01
.44 .57 .57
.20 .26 .26
2.32
1.05
.15
.07
.21
3.04
1.38
5.93
86.03
39.02
.74
.15 .29
Source, Table 4; turkeys started in three batches of 12,000 in 12.2 X 121.9 m (40 X 300 ft) brooder house; market age, 17.6 week; market weight, 6.98 kg (15.4 lb); livability 93%; condemnation, 1.24%; feed conversion 2.81 kg (lb) after condemnations were deducted. Source, Table 1; brooder houses depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest at 13% computed on average amount of brooder house investment over 20 yr and equipment over 15 yr. Source, Table 1; cost of labor and materials to construct three ranges was used. Feeders and waterers are transferred among ranges. Costs were depreciated over 10 yr by the straight line method. Interest on average amount of range construction and equipment investment over 10 yr was computed at 15%/yr. f Source, Table 2. "Interest on operating capital computed for 3 months/flock at 15% annual rate. Total labor to brood and grow-out 33,480 hen turkeys was 1,811 hr.
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Cost item
Quantity used
4.32 2.23 .33 .64 .64 .15
3.20
95.68
( 1.21)
( 1.52) ( .53) ( .15) ( .27) ( .11) ( .15) ( .15) ( .04)
( 1.48)
(42.95)
2.67
3.35 1.17
.33 .60 .24 .33 .33 .09
3.26
94.71
1.12
.64
3.84
( 4.53) (32.81)
9.99 72.35
(kg)
Mb)
(26.8)
12.15
Wkg)
(lb)
Total confinem ent
6.35 W/kg) 12.33 66.24
(kg)
Toms
Hens
.79 .15 .55 .24 .31 .31 .09
3.15
( 1.45)
90.14
3.33
( 1.96) ( 1.01) ( .29) ( .51) ( .15) ( .29) ( .29) ( .07)
(43.39)
1.28
( 1.74)
(kg) 12.93 «/kg) 9.64 70.30
(lb) (14.0) (rf/lb) ( 5.59) (30.04)
Tom
Custom hauling rate of $.022/kg ($.01/lb) (240 mile round trip) to processing plant added to supplemental equipm
Source, Table 1.
Feed valued at $.22/kg (.10/lb).
Tom poults valued at $1.04 and hen poults valued at $.68.
Labor rates averaged 1) confinement toms, 68 hr/1000; 2) confinement hens, 55 hr/1000, 3) range toms, 69 hr/10
^Interest on operating capital computed for 3 months/flock at 15% annual rate.
f Propane averaged 646 liters/1000 poults grown year around by full house brooding. Electricity average 189 kWh/1
e
c
Market weights before condemnation losses were deducted. Market weights used for cost computations in above finement toms 11.93 kg (26.3 lb); 2) confinement hens, 6.25 kg (13.78 lb); 3) range toms, 12.65 kg (27.89 lb) and 4) r
Market weights a Cost items Poults b Feed c Building and equipment depreciation and interest^ Supplemental equipment and hauling, turkeys e Propane and electric' Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Miscellaneous Interest on operating capital^ Total cost excluding operator labor land, and management"
Systems
TABLE 10. Summary of average turkey production costs by types of grow-out systems u
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1154
LANCE
shrinkage, and death losses were reduced by construction of processing facilities within the state.
REFERENCES Brooks, C. R., 1981. Most profitable weights for marketing turkeys. Turkey World 56(3): 14—18. Jensen, L., 1982. Turkey growth rates hit plateau. Turkey World 57(1): 1 0 - 1 4 . Lance, G. C , 1973. Economic analysis of turkey production costs in Georgia. Georgia Agric. Exp. Sta. Res. Bull. 147. Lance, G. C , 1982. 1982 comparison of turkey range and confinement labor practices used. Poultry Dig. 41(483):246-250. Voss, L. A., G. B. Rogers, H. B. Jones, and W. L. Henson, 1976. Turkey production costs in major regions, 1973-1975. USDA, ERS, PES 290: 30-31.
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systems over total confinement systems for summer and fall markets increase as feed prices increase. For each $.0276/kg ($25/ton) increase in average feed prices, feed cost increases $.09/kg ($.041/lb) of market weight for total confinement flocks and $.0878/kg ($.0398/lb) for range flocks. One of the primary limitations to turkey production in Georgia is the lack of processing plants within the state and the shortage of plant capacity in near-by states. Hauling distances to processing plants for Georgia producers vary from 100 to over 500 miles. Georgia producers bear greater shrinkage and death losses from long distance hauling than producers in other states that are located near processing plants. Georgia's competitive position in turkey production would improve if hauling cost,
1983 Poultry Science 62:1142-1154 INTRODUCTION The mild climate of the Southeast provides certain cost advantages for turkey production over colder areas of the United States. Georgia turkey producers normally grow three flocks per year on open range for the summer and fall marketing periods. Total confinement turkey production was started in Georgia during the early 1970's to grow winter turkeys so that processing plants could operate year around. Both total confinement and open range production systems are now used by Georgia producers. Some producers still use open range production almost exclusively whereas others are growing entirely in total confinement. The primary types of turkey production systems used in Georgia are described. Production Systems. Turkeys have both brooding and growing stages. All brooding is done in confined housing similar to broiler houses. Turkey brooder houses are typically 12.2 m (40 ft) wide and vary in length from 76.2 to 121.9 m (250 to 400 ft). Brooder houses have metal insulated roofs with 8.9 cm (3.5 in) of fiberglass insulation, open sides with curtains, dirt litter floors, and are equipped with automatic feeders, drinkers, and gas
brooders. Poults are normally placed in brooder houses at the rate of .093 m 2 /bird (1 ft 2 /bird). Turkey poults are transferred at 6 to 8 weeks to either total confinement grow-out houses or open pasture ranges. Grow-out houses are typically of pole-type construction with 2.5 cm (1 in) of styrofoam in roofs, open sides with curtains, and dirt litter floors. Grow-out houses are usually 15.2 m (50 ft) wide and 122 or 152.4 m (400 or 500 ft) in length. Hens are housed at a rate of .232 to .278 m 2 (2.5 to 3.0 ft 2 )/bird and toms at .278 to .325 m 2 (3.0 to 3.5 ft 2 )/bird. Ranges should contain at least 6.1 ha (15 a) of well-drained range land with at least 25% woods shade to grow-out a flock of 10,000 turkeys. Forty range feeders and 40 tub waterers are required for 10,000 turkeys. Range feeder sizes vary from 227 to 454 kg (500 to 1,000 lb) of feed and are filled directly from feed auger trucks. Published information is limited on comparisons of physical and economic efficiencies between total confinement and range grow-out systems among regions of the US. Voss et al. (1976) reported that turkey production costs for all systems were slightly lower in the
1142
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ABSTRACT An economic analysis of confinement and range turkey production systems was made for both torn and hen turkeys marketed in Georgia. Physical and economic differences were compared for total confinement and open range turkey production systems on a commercial scale. Georgia growers contract to grow a specified number of turkeys in total confinement to market in winter and spring months so processing plants can operate year-round. However, a larger number of turkeys are marketed during the summer and fall months. Many producers in parts of Georgia and other Southeastern states have changed from range systems to total confinement houses, which reduce any natural climatic advantages that the region has in open range production. This research revealed that total labor requirements are almost the same for the two systems. However, market weights for torn turkeys grown on range during the 1978 to 1981 period averaged .77 kg (1.7 lb) heavier with a .09 lower feed conversion than shown for total confinement flocks. Total production costs in 1981 excluding land and labor cost, with feed valued at $.22/kg ($.10/lb) for torn turkeys averaged $.0457/kg ($.0207/lb) lower for open range flocks than total confinement flocks. Performance records and cost analyses indicated that Georgia producers can grow both torn and hen turkeys to heavier weights more efficiently on open range than in total confinement for marketing during the summer, fall, and early winter months. (Key words: turkeys, production systems, open range, confinement, economics)
PRODUCTION SYSTEMS IN GEORGIA
MATERIALS AND METHODS
Data Collection. Performance data and cost records for 185 flocks with a total volume of 2.2 million birds grown over the 1978 to 1981 period were obtained from producers by personal interview. Investment costs, operating costs, labor requirements, propane usage, and electricity records were obtained from 50 producers. House construction and equipment purchase costs were obtained from 14 producers who either constructed or renovated brooder houses or grow-out houses during the 1979 to 1982 period (Tables 1 and 2). Production Performance. Physical performance rates on market weights, age of flocks, feed consumption, livability, and condemnation were first arrayed by the sex of the flock, the type of production system, and by seasons of the year, to determine variability among winter, summer and fall flocks within production systems. Labor. The turkey growers interviewed in the survey gave the daily time for each chore
required in brooding and grow-out operations (Lance 1982). Brooding labor averaged 22.5 man hours/1,000 birds for both torn and hen flocks. Grow-out labor for toms averaged 45.5 hr/1,000 birds in confinement and 46.5 hr/ 1,000 birds on open ranges. Grow-out labor for hens averaged 32.1 hr/1,000 birds in confinement and 31.6 hr/1,000 birds on range. Propane and Electric Use. Fuel records from 68 Georgia flocks brooded in all seasons of the year during the 1978 to 1981 period averaged 646.4 liters (171 gal) of propane/1,000 turkeys. Brooding fuel records for flocks grown on range averaged 431 liters (114 gal) of propane/1,000 turkeys. Full house brooding was practiced for all 68 flocks. Georgia growers reported using 189 kWh of electricity/l,000 turkeys during the 1980 to 1981 period. Georgia growers use electricity only for feeding and pumping water because electric lights and power ventilation are not used in open type houses in Georgia. Electricity requirements were approximately the same for confinement and range flocks. Cost Budgets. Cost budgets, comparing confinement and range grow-out systems for turkeys, were synthesized from the physical performance data, producer investment, and operating cost records. Building and equipment investment, poult, interest, energy, and other input cost rates prevalent in 1981 were incorporated into the budgets. Most of the growers that constructed brooding and growout facilities during the 1979 to 1982 period purchased equipment from suppliers and hired carpenter labor to construct the houses. Brooding and grow-out house construction costs would be somewhat higher if producers purchased turnkey jobs. Feed was budgeted at an average price of $.22 kg ($.10 lb) for comparison purposes. Labor cost rates were highly variable depending on whether family, hired, or contract labor was used. It was considered more relevant for the individual operator to use land, labor, and management costs that are peculiar to his personal operation. RESULTS
Physical performance rates from flocks grown during the 1978 to 1982 period were first arrayed by market weights for comparison of results from total confinement and range grow-out systems (Tables 3 and 4). Physical performances were also compared by seasons of
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Southeast than in the Midwest, and production costs were highest in the West. Lance (1973) reported that production costs for range flocks during 1972 in Georgia were more closely related to livability than any other factor. Jensen (1982) reported performance data including growth rates and feed consumption standards for all systems used in the US. Brooks (1981) reported variation in production and processing costs as related to sex of turkeys, rrlarket weights, and types of producers. Lance (1982) reported brooding labor and grow-out labor requirements for both total confinement and range grow-out systems in Georgia. Economic studies are needed to evaluate the relative efficiencies between total confinement and range grow-out systems for both torn and hen turkey flocks. Turkey growers can use this information to help determine the most profitable number of confinement and range birds to grow under existing market conditions and with individual farm restrictions. Turkey growers can also use such information for long range plans on expansion possibilities for total confinement and range production. This study will also provide a basis for comparing the potential of commercial operations in regional production and for comparing the efficiency of commercial flocks with research flocks.
1143
15.2 X 122.0 (50 X 400 ft) 6 ha (15 a)
3,708.8 (40,000 ft 2 ) 10,000 e
12,000 toms/ 16,000 hens
12,000 e
(no. birds)
1,116.3 (12,000 ft 2 )
(m 2 )
(m)
12.2 X 91.5 (40 X 300 ft)
Capacity
Area
House size
1,940
67,200
18,720
Construction
The same capacity was usually used for toms and hens.
Range investment included stock wire, posts, water pipe, 453.5 kg (1000 lb) feeders, and drinkers. Feeders and d started. Range land in Georgia was renting in 1982 for approximately $62/ha ($25/a).
Conventional open side houses with insulated roofs. Equipment included automatic adult turkey feeders, drinker two grow out houses.
Conventional open side house with insulated roof. Equipment included gas brooders, automatic poult feeders, and curtains. Brooder house for 16,000 hen poults 12.2 X 122.0 m (40 X 400 ft) cost $38,400.
Source: 1981 to 1982 turkey farm survey. House construction based on costs from 14 producers included grading, g
j
Range d
1
2
0
No.
Grow-out house e
Brooder house
Type facility
TABLE 1. Turkey house, equipment, and range construction costs, Georgia,
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PRODUCTION SYSTEMS IN GEORGIA
the year to determine if production variability is more closely related to production systems or seasonal factors (Table 5). The feed conversions discussed next will reflect total conversions after condemnation losses were deducted from the market weights. Physical Performances Tom Flocks, Feed conversions by market weight ranges for torn flocks were highly
Item
No.
Initial cost
Repairs
t^\...
Well and pump Farm tractor^ Front end loader Spreader truck Feed truck Sprayer Pickup truck 0 Mower Farm trailer Turkey loader Scrape blade Loading fans Feed auger wagon Total
\*>
107 246 98 350 800 51 307 88 10 50
2,518 1,358 1,314 3,500 28,000 693 2,280 813 2,080 12,750 208 800 1,100 57,414
60 2,167
Annual fixed cost
Annual total cost
Cost 1,000 turkeys
Depreciation — \W >d Interest — 15% e Repairs Insurance' Taxesg Total annual cost
5,741 4,306 2,167 861 344 13.419
] ]I ] 1 ]L I
l
I I
Source: Georgia survey.
1981 to
57.41 43.06 21.67 8.61 3.44 134.19
1982 turkey farm
Average price reported for used tractor was $5,430 (25% charged to turkey operation). Average price reported for used 907 kg (V4 ton) truck was $4,560 (50% charged to turkey operation). Depreciation computed over 10 years by straight line method. Interest computed on average amount of loan over 10 years at 15%/yr. f Insurance cost estimated to be 1.5% of average purchase price. ^Taxes estimated for 40% of average value over 10 yr at 30 mills.
variable over the study period (Table 3). Market weights within the two production systems were closely related to age, but feed conversions appeared to be more closely related to livability and condemnation losses. Market weights from open range flocks averaged .77 kg (1.7 lb) heavier and feed conversions averaged .09 less when compared with total confinement flock results. Ages of range flocks averaged 22.1 weeks and confinement flocks averaged 21.3 weeks. Livability and condemnation losses were lower in the total confinement system. Greater mortality losses are expected from open ranges flocks due to predator losses. The growers reported that the more efficient flocks were sometimes grown to heavier market weights than the poorer performing flocks. Sufficient flock records were available to array the physical performance data into a winter and a combined summer to fall period to reflect the major seasonal weather variations in Georgia (Table 5). Flock records for confinement torn flocks indicated little seasonal variation in market weights and feed conversions. However, livability for confinement birds was 2.9% higher in winter flocks than in summer and fall flocks. Range flocks marketed in the summer and fall averaged 1.04 kg (2.3 lb) heavier with a .09 lower feed conversion rate when compared to total confinement birds marketed during the same season. Average ages during this period were 22.2 weeks for range flocks and 21.4 for confinement flocks. Hen Flocks. Feed conversions were even more closely related to livability for the two hen grow-out systems than was reflected in the torn flock records (Table 4). Livability was 3.7% greater for hen flocks grown on open ranges and condemnations were .3% lower than shown for hens housed in total confinement. Market weights for hens grown on open ranges averaged .63 kg (1.4 lb) heavier with a .2 lower feed conversion rate than shown for the total confined hen flocks. The hen flock records indicated more seasonal variability in performance for flocks grown in total confinement than shown for torn flocks (Table 5). The largest and most efficient confinement flocks were marketed in the fall. However, range flocks marketed in the fall season were .41 kg (.9 lb) heavier with a .16 lower feed conversion rate when compared to confinement flocks marketed in the fall.
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TABLE 2. Initial investment and annual costs for supplemental equipment, 100,000 turkey operation, independent growers, Georgia, 1981"
1145
to to to to to
(week)
(no. birds)
22.1
11,280
35
f
a
12.93
11.70 11.97 12.56 12.83 13.33 14.06
12.15
11.52 12.06 12.34 12.88 13.42
(kg)
(28.5)
(25.8) (26.4) (27.7) (28.3) (29.4) (31.0)
(26.8)
(25.4) (26.6) (27.2) (28.4) (29.6)
(lb)
Market weight
Condemnations also include weights of dead birds delivered to processing plants.
Computed after condemnations were deducted from total weights delivered to processing plants.
Computed before condemnations were deducted from total weights delivered to processing plants in South Carolina
Turkeys are started in brooder house, 0 to 8 weeks, and moved to open pasture grow-out ranges, 8 to 22 weeks.
Turkeys are started in brooder houses, 0 to 8 weeks, and moved to confinement grow-out houses, 8 to 22 weeks.
Source: 1981 to 1982 turkey farm survey.
Average
20.7 21.3 21.6 21.8 22.3 23.5
12,044 8,289 10,500 8,905 15,067 12,895
4 8 3 5 5 10
26) 27) 28) 29) 30) 30)
21.3
8,669
25
Average
Open range systems 0 11.34 to 11.79 11.79 to 12.24 12.24 to 12.70 12.70 to 13.15 13.15 to 13.61 Above 13.61
20.9 21.6 21.3 21.4 22.2
Age
Flock size
11,059 6,562 6,400 6,164 7,786
26) 27) 28) 29) 30)
(no.)
Flocks
11 4 3 3 4
(25 to (26 to (27 to (28 to (29 to (above
(lb)
(25 (26 (27 (28 (29
0
Turkey weight ranges
Confinement systems 11.34 to 11.79 11.79 to 12.24 12.24 to 12.70 12.70 to 13.15 13.15 to 13.61
(kg)
Type of system
TABLE 3. Average torn turkey production performance by selected market weight groups, confinement, and range
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46
16.6 17.3 17.6 18.2 17.6
10,782 10,270 13,576 11,014 12,240 6.98
6.08 6.71 7.07 7.48
6.35
5.67 6.12 6.58 7.03
(kg)
(15.4)
(13.4) (14.8) (15.6) (16.5)
(14.0)
(12.5) (13.5) (14.5) (15.5)
(lb)
Markett weight
Computed before condemnations were deducted from total weights delivered to processing plants in South Carolina
Turkeys are started in brooder house, 0 to 8 weeks, and moved to open pasture grow-out ranges, 8 to 18 weeks.
Turkeys are started in brooder houses, 0 to 8 weeks, and moved to confinement grow-out houses, 8 to 18 weeks.
Source: 1981 to 1982 turkey farm survey.
14) 15) 16) 17)
17.6
16.7 17.2 18 18.5
(weeks)
Age
Computed after condemnations were deducted from total weights delivered to processing plants. f,Condemnations also include weights of dead birds delivered to processing plants.
c
a
Average
to to to to
6 5 24 11
(13 (14 (15 (16
13,656
79
Average
13) 14) 15) 16)
Open range systems 0 5.90 to 6.35 6.35 to 6.80 6.80 to 7.26 7.26 to 7.71
to to to to
(no. birds)
Flock size
14,448 12,477 14,771 12,558
(12 (13 (14 (15
(no.)
Flocks
13 25 29 12
(lb)
(kg)
Turkey weight ranges
Confinement systems'5 5.44 to 5.90 5.90 to 6.35 6.35 to 6.80 6.80 to 7.26
Type of system
TABLE 4. Average hen turkey production performance by selected market weight groups, confinement, and range g
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Source: 1981 to 1982 turkey farm survey.
hens hens hens hens
(lb) (25.8) (26.2) (28.5) (14.3) (13.0) (13.9) (14.8) (15.7)
(kg) 11.70 11.88 12.93 6.49 5.90 6.30 6.71 7.12
(weeks) 20.8 21.4 22.2 17.3 16.9 18.0 18.2 17.7
(no. birds) 8,992 9,669 11,807 13,162 13,702 12,433 14,343 14,299
17 14 34 19 18 20 21 35
(no.)
Weight
Market
Age
Size of flock
Flocks
f
e
Condemnations also include weight of dead birds delivered to processing plants.
Computed after condemnations were deducted from total bird weights delivered to processing plants in South Carol
Computed before condemnations were deducted from total bird weights delivered to processing plants in South Car
Flocks marketed in December were also included in the fall average for range toms and range hens.
Seasons reflect months that turkeys were marketed (winter months: Dec, Jan, and Feb; spring months: Apr, May fall months: Sept, Oct, and Nov).
a
Winter Summer and fallc Summer and fall c Winter Spring Summer Fall FaIIc
Confinement Confinement Range toms Confinement Confinement Confinement Confinement Range hens
toms toms
Season sold 0
Production system
TABLE 5. Average seasonal turkey production performance rates for confinement and range sys
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PRODUCTION SYSTEMS IN GEORGIA Production
Costs
Average production costs derived from the flock performance records and producer cost records were illustrated in bugets for both total confinement and open range flocks (Tables 6, 7, 8, and 9). Average costs grouped into the main cost factors were summarized for comparison of grow-out systems in Table 10. Cost differences for total confinement flocks and open range flocks are discussed separately below for toms and hens.
1149
Toms. Building and equipment depreciation and interest costs averaged $.0267/kg ($.0121/ lb) for total confinement flocks and $.0128/kg ($.0058/lb) for open range flocks (Table 10). Supplemental equipment cost and turkey hauling cost totaled $.0335/kg ($.0152/lb) for confinement flocks and $.0333/kg ($.0151/lb) for the open range flocks. Propane brooder fuel and electricity cost averaged $.0117/kg (.0053/ lb) for confinement flocks and $.0079 kg ($.0036/lb) for range flocks. Feed cost valued at $.22/kg ($.10/lb) averaged $.0205/kg
Cost item
Unit
Quantity used
Cost
Cost
Cost
per
per kg
per lb
turkey
Rate
{
W
Poults* Feed a Brooder house Depreeiationb Interest 0 Grow-out house depreeiationb interest 0 Supplemental equipment" Propane Electricity Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital e Laborf Total cost, excluding land, labor, and management
no.
kg/bird
48,000 39.14
\f)
^
.22
1.19 8.62
9.99 72.34
4.53 32.81
1.04
$/yr $/yr
1,607 1,871
.13
.04 .05
.33 .42
.15 .19
$/yr $/yr
4,241 5,226
.10 .13
.84
.13
1.08
.38 .49
$/l,000 birds liters/1,000 birds kWh/1,000 birds $/l,000 birds $/l,000 birds $/yr $/l,000 birds $/l,000 birds S/lb $/l,000 birds $/bird hr/1,000 birds
134 646 189 38 68
.20
.055
1,049 40 40 .01 10
10.46
.15
.13 .13 .01 .04 .07
1.08 1.08 .09 .33 .60
.49 .49 .04 .15 .27
.03 .04 .04 .27 .01
.24 .33 .33
.11 .15 .15
2.27
1.03
.09
.04
.39
3.26
1.48
11.30
94.70
42.95
68
Source, Table 3; turkeys started in four batches of 12,000; market weight, 12.15 kg (26.8 lb); age, 21.3 week; livability, 89.1%; condemnation, 1.81%; feed conversion, 3.28 kg (lb) after condemnations were deducted. Source, Table 1; houses depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest computed at 13% on the average amounts of building investment for 20 yr and equipment investment for 15 yr. Source, Table 2. f
Interest on operating capital computed over 3 months/flock at 15% annual rate. Total labor required to brood and grow-out 41,899 torn turkeys was 2,849 hr.
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TABLE 6. Average annual production costs, 41,899 torn turkeys grown in confinement houses, by independent producers, Georgia, 1981
LANCE
1150
($.0093/lb) lower for flocks grown on open ranges than for flocks grown in total confinement houses. Total production cost for open range flocks excluding land and labor costs averaged $.0457/kg ($.0207/Ib) lower than total cost for confinement flocks. Hens. Building and equipment depreciation and interest costs averaged $.0384/kg ($.0174/ lb) for total confinement flocks and $.0232/kg ($.0105/lb) for open range flocks. Supple-
mental equipment and turkey hauling costs totaled $.0432/kg ($.0196/lb) for total confinement and $.0421/kg ($.0191/lb) for open range flocks. Propane fuel and electricity averaged $.0223/kg ($.0101/lb) for confinement flocks and $.0148 kg ($.0067/lb) for range flocks. The feed costs of $.6121/kg ($.2776/lb) for the range flocks was $.0503/kg ($.0228/lb) lower than the average feed cost shown for the total confinement flocks. Total
TABLE 7. Average annual production costs, 31,356 torn turkeys grown on open ranges by independent producers, Georgia, 1981
Unit
Poults 3 Feed a Brooder house Depreciation 0 Interest 0 Range depreciation^ Range interest e Supplemental equipment' Propane Electricity Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital? Labor"
no.
Cost
Cost
Cost
per
per kg
per lb
turkey
Rate (%)
kg/bird $/yr $/yr $/yr $/yr $/l,000 birds liters/1,000 birds kWh/1,000 birds $/l,000 birds $/l ,000 birds $/yr $/l,000 birds $/l,000 birds $/lb $/l,000 birds $/bird hr/1,000 birds
36,000 40.32
1.04 .22
1,607 1,871
.13
982 737
.15
134 431 189 15 68
.20
.055
1,049 40 40 .01 10
10.75
.15
W
1.22 8.89
9.64 70.27
4.37 31.87
.05 .06 .03 .02
.40 .49 .24 .15
.18 .22 .11 .07
.13 .09 .01 .02 .07
1.04 .71 .09 .15 .55
.47 .47 .04 .07 .25
.03 .04 .04 .29 .01
.24 .31 .31
.11 .14 .14
2.29
1.04
.09
.04
.40
3.15
1.43
11.44
90.12
40.87
69
Total cost excluding land, labor, and management . . . .
Source, Table 3; turkeys started in three batches of 12,000: market weight, 12.93 kg (28.5 lb); age, 22.1 week; livability, 87.1%; condemnation, 2.13%; and feed conversion, 3.19 kg (lb) after condemnations were deducted. Source, Table 1; brooder house depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest computed at 13% on the average amounts of brooder house investment over 20 yr and equipment investment for 15 yr. Source, Table 1; Cost of labor and materials to construct three ranges was used. Feeders and waterers are transferred among ranges. Costs were depreciated over 10 yr by straight line method. f
Interest on average amount of range construction and equipment loan over 10 yr was computed at 15%/yr. Source; Table 2.
''Interest on operating capital computed for 3 months/flock at 15% annual rate. Total labor to brood and grow-out 31,356 torn turkeys was 2,164 hr.
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Cost item
Quantity used
PRODUCTION SYSTEMS IN GEORGIA p r o d u c t i o n costs excluding land and labor of $.8604/kg ( $ . 3 9 0 2 / l b ) for t h e open range flocks was $.0964/kg ( $ . 0 4 3 7 / l b ) less t h a n t o t a l cost of c o n f i n e m e n t flocks.
DISCUSSION T h e t u r k e y i n d u s t r y in p a r t s of Georgia and o t h e r Southeastern states is moving rapidly toward total confinement turkey production, a l t h o u g h it m a y n o t be t h e m o s t economical system. Some have assumed t h a t range pro-
1151
d u c t i o n advantages were not sufficient t o justify t h e e x t r a difficulty and labor incurred in range p r o d u c t i o n . However, t h i s research has revealed t h a t t h e t o t a l labor r e q u i r e m e n t s are almost t h e same for t h e t w o p r o d u c t i o n syst e m s . Range flocks require m o r e daily t i m e , b u t t h e additional t i m e required t o clean o u t and replace litter and e q u i p m e n t in grow-out houses m a k e s t o t a l labor r e q u i r e m e n t s almost equal. Flock p r o d u c t i o n records a n d cost b u d g e t s s h o w t h a t Georgia producers can grow heavier
Cost item
Unit
Quantity used
Poults a Feed a Brooder house Depreciation" Interest 0 Grow-out house Depreciation^ Interest 0 Supplemental equipment" Propane Electricity Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital e Labor*
no. kg/bird
64,000 18.78
houses,
Cost per turkey
Cost per kg
68 22
.77 4.14
12.33 66.24
5.59 30.04
Rate
($)
< irt
\t)
$/yr $/yr
2,144 2,496
13
.04 .04
.64 .64
.29 .29
$/yr $/yr
4,241 5,226
13
.07 .09
1.12 1.43
.51 .65
.13 .13 .01 .04 .07
2.07 2.07 .15 .64 1.12
.94 .94 .07 .29 .51
.02 .04 .04 .14 .01
.33 .64 .64 2.25 .15
.15 .29 .29 1.02 .07
.20
3.20
1.45
5.98
95.66
43.39
$/l,000 birds liters/1,000 birds kWh/1,000 birds $/l ,000 birds $/l,000 birds $/yr $/l,000 birds $/l,000 birds $/lb $/l,000 birds $/bird hr/1,000 birds
Total cost excluding land, labor, and managemen t
Cost per lb
134 646 189 38 68
20 055
1,049 40 40 01 10 5.41 55
15
Source, Table 4; turkeys started in four batches of 16,000 poults in 12.2 X 121.9 m (40 X 400 ft) house; market age, 17.6 weeks: market weight, 6.35 kg (14 lb); livability, 89.3%; condemnation, 1.54%; and feed conversion, 3.01 kg (lb) after condemnations were deducted. When poults are available, 5 batches/yr of hens can be grown. Source, Table 1; houses depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest computed at 13% on the average amounts of building investments over 20 yr and equipment investments over 15 yr. Source, Table 2. Interest on operating capital computed over 3 months/flock at 15% annual rate.
f Total labor required to brood and grow-out 57,152 hen turkeys was 3,143 hr.
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TABLE 8. Average annual production costs, 57,152 ben turkeys grown in confinement by independent producers, Georgia, 1981
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and more efficient turkeys on open range than in confinement houses for the summer and fall market. Georgia's most efficiently produced turkeys from summer and fall ranges are marketed during the peak demand Thanksgiving and Christmas seasons. Hen turkeys are grown more efficiently than toms; however, some Georgia producers are
paid a premium for heavy torn turkeys marketed for further processing during the summer and fall seasons, so it is more profitable to grow heavy toms on open range and hens in confinement for summer and fall markets when price premiums for toms are sufficient to offset the production cost advantage of hens. The more efficient cost advantages of open range
TABLE 9. Average annual production costs, 33,480 hen turkeys, grown on open ranges by independent growers, Georgia, 1981
Unit
Rate
Cost
Cost
Cost
per
per
turkey
kg
per lb (,t\
($) a
Poults Feed a Brooder house Depreciation^ Interest 0 Range depreciation" Range interest e Supplemental equipment' Propane Electric Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Hauling turkeys Miscellaneous Interest on operating capital? Labor h
no.
kg/bird $/yr $/yr $/yr $/yr $/l,000 birds liters/1,000 birds kWh/1,000 birds $/l,000 birds $/l,000 birds $/yr $/l,000 birds $/l,000 birds $/lb $/l,000 birds $/bird hr/1,000 birds
36,000 19.14
.68 .22
1,607 1,871
.13
982 757
.15
134 431 189 15 68
.20
.055
1,049 40 40
0 0 .01
10
5.47 54.1
.15
Total cost excluding land, labor, and management
(
4.22
10.74 61.21
4.87 27.76
.05 .06 .03 .02
.73 .86 .44 .29
.33 .39 .20 .13
.13 .09 .01 .02 .07
1.90 1.32 1.01
.86 .60 .07 .13 .46
.03 .04 .04 .16 .01
.44 .57 .57
.20 .26 .26
2.32
1.05
.15
.07
.21
3.04
1.38
5.93
86.03
39.02
.74
.15 .29
Source, Table 4; turkeys started in three batches of 12,000 in 12.2 X 121.9 m (40 X 300 ft) brooder house; market age, 17.6 week; market weight, 6.98 kg (15.4 lb); livability 93%; condemnation, 1.24%; feed conversion 2.81 kg (lb) after condemnations were deducted. Source, Table 1; brooder houses depreciated over 20 yr by straight line method and equipment depreciated over 15 yr. Interest at 13% computed on average amount of brooder house investment over 20 yr and equipment over 15 yr. Source, Table 1; cost of labor and materials to construct three ranges was used. Feeders and waterers are transferred among ranges. Costs were depreciated over 10 yr by the straight line method. Interest on average amount of range construction and equipment investment over 10 yr was computed at 15%/yr. f Source, Table 2. "Interest on operating capital computed for 3 months/flock at 15% annual rate. Total labor to brood and grow-out 33,480 hen turkeys was 1,811 hr.
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Cost item
Quantity used
4.32 2.23 .33 .64 .64 .15
3.20
95.68
( 1.21)
( 1.52) ( .53) ( .15) ( .27) ( .11) ( .15) ( .15) ( .04)
( 1.48)
(42.95)
2.67
3.35 1.17
.33 .60 .24 .33 .33 .09
3.26
94.71
1.12
.64
3.84
( 4.53) (32.81)
9.99 72.35
(kg)
Mb)
(26.8)
12.15
Wkg)
(lb)
Total confinem ent
6.35 W/kg) 12.33 66.24
(kg)
Toms
Hens
.79 .15 .55 .24 .31 .31 .09
3.15
( 1.45)
90.14
3.33
( 1.96) ( 1.01) ( .29) ( .51) ( .15) ( .29) ( .29) ( .07)
(43.39)
1.28
( 1.74)
(kg) 12.93 «/kg) 9.64 70.30
(lb) (14.0) (rf/lb) ( 5.59) (30.04)
Tom
Custom hauling rate of $.022/kg ($.01/lb) (240 mile round trip) to processing plant added to supplemental equipm
Source, Table 1.
Feed valued at $.22/kg (.10/lb).
Tom poults valued at $1.04 and hen poults valued at $.68.
Labor rates averaged 1) confinement toms, 68 hr/1000; 2) confinement hens, 55 hr/1000, 3) range toms, 69 hr/10
^Interest on operating capital computed for 3 months/flock at 15% annual rate.
f Propane averaged 646 liters/1000 poults grown year around by full house brooding. Electricity average 189 kWh/1
e
c
Market weights before condemnation losses were deducted. Market weights used for cost computations in above finement toms 11.93 kg (26.3 lb); 2) confinement hens, 6.25 kg (13.78 lb); 3) range toms, 12.65 kg (27.89 lb) and 4) r
Market weights a Cost items Poults b Feed c Building and equipment depreciation and interest^ Supplemental equipment and hauling, turkeys e Propane and electric' Litter Medication Insurance, taxes, and repairs Truck and tractor fuel Loading turkeys Miscellaneous Interest on operating capital^ Total cost excluding operator labor land, and management"
Systems
TABLE 10. Summary of average turkey production costs by types of grow-out systems u
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shrinkage, and death losses were reduced by construction of processing facilities within the state.
REFERENCES Brooks, C. R., 1981. Most profitable weights for marketing turkeys. Turkey World 56(3): 14—18. Jensen, L., 1982. Turkey growth rates hit plateau. Turkey World 57(1): 1 0 - 1 4 . Lance, G. C , 1973. Economic analysis of turkey production costs in Georgia. Georgia Agric. Exp. Sta. Res. Bull. 147. Lance, G. C , 1982. 1982 comparison of turkey range and confinement labor practices used. Poultry Dig. 41(483):246-250. Voss, L. A., G. B. Rogers, H. B. Jones, and W. L. Henson, 1976. Turkey production costs in major regions, 1973-1975. USDA, ERS, PES 290: 30-31.
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systems over total confinement systems for summer and fall markets increase as feed prices increase. For each $.0276/kg ($25/ton) increase in average feed prices, feed cost increases $.09/kg ($.041/lb) of market weight for total confinement flocks and $.0878/kg ($.0398/lb) for range flocks. One of the primary limitations to turkey production in Georgia is the lack of processing plants within the state and the shortage of plant capacity in near-by states. Hauling distances to processing plants for Georgia producers vary from 100 to over 500 miles. Georgia producers bear greater shrinkage and death losses from long distance hauling than producers in other states that are located near processing plants. Georgia's competitive position in turkey production would improve if hauling cost,