ODI Cost

California ODI
Salary Salesperson $ 40,000 80 farms/each Fixed cost License fee
Tech $ 35,000 5 salesppl/each
Variable cost Injection model
No. of farms $ 3,023
in California Lenses

Salesppl needed $ 38
Tech needed $ 8
Marketing
Salary cost $ 1,776,013 Ad cost

Total annual $ 19,600 HQ expense

cost

Total $ 1,795,613
R&D

Cost Saving for farmers

Reference Debeaking $ 345 per time every 10000 birds

value

Differetiation Saving from feed $ 2,250 per year every 10000 birds 2249.13
value
Saving from egg $ 25 per time every 10000 birds 25
retardation

Saving from low $ 297 per year every 10000 birds

mortality
9%--4.5%: 450 more birds survive,
assuming 22 dozens eggs per hen-
year, profit will increase by
22*0.03*450
 ODI
$ 50,000

$ 12,000 7.2million/y, 15million/model

$ 0.032

Marketing
$ 100,000 per year

$ 184,000 20 million pair

$ 614,000 60 million pair
$ 1,200,000 120 million pair

$ 250,000 per year

(156*365*158/2000)/2
 (1/12)*10000*0.03

%: 450 more birds survive,

ng 22 dozens eggs per hen-
ofit will increase by
*450
Exhibit 5 Average Cost per Dozen Eggs Produced, 1974

Cost per
dozen eggsa
dollar (cents)

Laying stock
Purchase cost per hen $2.4
Allocation for replacing dead birds 0.21
Total laying stock cost $2.61 11.9
Feed
Annual feed costs per hen $7.04 32.0
Labor 2.4
Supplies, taxes, utilities and so forth 1.8
Miscellaneous adjustments
Cull sales per dozen (credit) (0.3)
Laying stock value adjustment (credit) (1.7)
Net cash and labor cost per dozen 46.1
Depreciation (15% average value of buildings and equipment) 1.2
Interest (8% on land, laying stock, and average value of buildings 1.4
and equipment)
Management per dozen 1.3
3.9
Total costs per dozen 50
Average price per dozen 53.0
Average profit per dozen 3.0
 Cost per 10,000 Savings per
hen-year (dollar) bird

24,000
2,100
26,100 26,100 0.213 9% -> 4.5% 確定allocation是FC還是VC

70,400 70,400 0.22 156 lbs per 20000 hens-day, $158/ton

5,280
3,960

(660)
(3,740)
101,340
2,640
3,080
2,860
8,580
109,920
price per 10000 116,600
profit per 1000 6,680

One-time Savings
Debeaking 0.0341 per 10,000 birds
ODI installation -0.0333 per 10,000 birds
Egg retardation 0.1000 per 10,000 birds
Economic value 0.5387 per bird
reference 0.0341 per bird
differentiation 0.5046 per bird
Exhibit 3 Characteristics of U.S. Chicken Farms, 1969

Flock Size 20,000–49,000 Flock size 50,000

Total Farms (Sales Chickens on No of No. of Farms Reporting No. of No. of
over $2,500) Total Farms Farms Flock Size Chickensa Farms
States in Pacific Region
Washington 1,929 5,230,575 40 20 1,090,102 11
Oregon 1,825 2,249,752 13 13 414,220 3
California 3,023 46,203,988 320 320 9,517,453 114
Alaska 25 25,617 0 0 0
Hawaii 90 1,069,618 8 8 255,000 4
Pacific Region Total 6,892 54,779,550 381 361 11,276,775 132

Other Regions
New England 2,621 17,265,305 135 128 3,660,578 31
Middle Atlantic 12,867 31,036,554 240 240 6,969,792 55
East North Central 54,429 46,650,039 339 339 9,267,919 57
West North Central 112,119 41,213,868 158 156 4,372,320 34
South Atlantic 29,971 82,176,127 860 860 24,221,265 168
East South Central 29,045 36,617,712 317 317 8,854,258 62
West South Central 31,101 46,450,783 412 412 11,876,032 77
Mountain 14,295 7,018,828 28 23 682,444 15
Total U.S 293,340 363,208,766 2,870 2,856 81,547,775 631
Percent of Total 100% 100% 1% 22.4% 0.2%

States in Pacific Region

Washington
Oregon
California
Alaska
Hawaii
Pacific Region Total

Other Regions
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Total U.S.
Percent of Total

Note: The data in Exhibit 3 are not fully consistent with those in Exhibits 1 and 4 because of differences in sources and definitions.

a
The number of chickens for which flock size was reported.
b
Not reported to preserve confidentiality regarding individual farm flock sizes.
 Flock size 50,000–99,000 Flock size 100,000 and over
No. of Farms Reporting No. of Chickensa No. of Farms No. of Farms Reporting No. of Chickensa
Flock size Flock size

11 663,378 10 10 2,085,936
3 229,000 6 6 848,705
114 7,459,944 87 87 22,952,283
0 0 0
0 12 0
128 8,352,322 115 103 25,886,924

20 1,320,796 15 13 2,974,242
55 3,419,870 29 29 5,239,990
39 2,631,736 22 20 3,461,252
27 1,808,508 21 16 2,480,555
155 10,085,341 70 66 12,065,486
58 3,795,730 27 25 5,661,485
75 5,111,151 42 39 11,264,948
0 14 3 806,350
557 41,566,445 345 314 74,856,267
11.4% 0.1% 20.6%
 Estimated No. of
No. of chickens Profitability Profitability with
No. of farms Chicken reported with P=0.08 P=0.53

States in Pacific Region

Washington 61 4,929,518 3,839,416
Oregon 22 1,491,925 1,491,925
California 521 39,929,680 39,929,680
Alaska 0 0
Hawaii 24 255,000
Pacific Region Total 628 49,417,735 45,516,021 -20252.34
0 0
Other Regions 0 0
New England 181 9,339,817 7,955,616
Middle Atlantic 324 15,629,652 15,629,652
East North Central 418 16,921,680 15,360,907
West North Central 213 9,961,484 8,661,383
South Atlantic 1098 47,949,201 46,372,092
East South Central 406 19,026,166 18,311,473
West South Central 531 29,254,963 28,252,131
Mountain 57 1,488,794
Total U.S
Percent of Total
Revenue
Sales revenue pacific
Price 0.08
Total No. of chicken 49,417,735
penetration rate 50.00%
No. of chicken served 24708867.73
Revenue 1976709.418

Costs for a office

Cost Note（california 20000+)
Projected Annual Cost 196,000

Estimated Farms served 628

Salesmen needed 8
Salary for salesmen 320,000 40,000 per 80 farms
Technical R needed 2
Salary for technical R 70,000 35,000 per 5 salesmen
Total Cost 586,000

Cost for product

Fixed
License Fee (2 years) 25,000 2 year

Variable
Estiimated Lenses Needed 24,708,868
Model Needed 4
Injection Model Costs 19,767 12000 for 15 million pairs, capacity = 7.2 million pairs per year
Lenses purchasing costs 790,684
Boxes Needed 98,835
Costs of plastic box 9,884
Costs to fill ODI 13,837
processing and shipping 17,790
Total 876,962

Other Costs

Advertising Costs 100,000

Headquarter 184,000
RD (if possible) 250,000
Total 534,000

Total Profit - 20,252

airs per year