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Feasibility of Expanding an Egg-Grading Plant to Achieve Economies of Scale

Author

Listed:
  • Harris, Clarence E.

Abstract

Excerpts from the report Summary: Management of many firms in the egg industry are contemplating upgrading their facilities to improve efficiency. High-speed egg washers and graders are available that exceed the capacity of the most modern equipment used 10 years ago. This report presents a step-by-step example of the economic feasibility analysis that the management of a shell egg-grading and packing plant may wish to conduct before starting an expansion. The report is based on expanding a plant with a capacity of 70 cases per hour to 135 cases per hour. Initially, the volume of product would be about the same in the expanded plant , but it would operate one shift per day rather than two. A layout for expanding the plant is presented and described, along with the major items of new equipment needed. Itemized equipment prices are presented for four systems, with an average used for the feasibility analysis.

Suggested Citation

  • Harris, Clarence E., 1983. "Feasibility of Expanding an Egg-Grading Plant to Achieve Economies of Scale," Marketing Research Reports 313814, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
  • Handle: RePEc:ags:uamsmr:313814
    DOI: 10.22004/ag.econ.313814
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    File URL: https://ageconsearch.umn.edu/record/313814/files/mrr1134.pdf
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