Feed factories make important contributions to the economy such as utilizing agricultural crops, creating employment and providing foreign currency returns through exports. The aim of this study was to examine the production cost and the economic losses of feed factories arising from idle capacity. The research material consisted of the data obtained through the questionnaire from 3 factories producing concentrated feed in Samsun Province. The cost of feed production was determined by partial cost approach, and the economic losses of the factories was calculated by estimating GDP, gross profit, net profit and relative profit. The annual average capacity utilization rate of the feed factories was found as 55.43%, the feed production amount and cost were found as 161,493 tons and 162.99 million TL, respectively. About 89% of the feed production costs were variable costs and 11% were fixed costs. According to the average of the factories, the cost of feed production per 1 kg was found as 1.009 TL. However, assuming that these factories work at full, medium and low capacity, the cost of the feed for one kg was calculated as 0.992 TL, 1.014 TL and 1.018 TL, respectively. While the average gross production value of the factories was calculated as 183.4 million TL, their average gross and net profits were calculated as 38.4 million TL and 20.4 million TL, respectively. Due to working with insufficient capacity, the feed factories lost 44.78% of production (597.52 tons), 55% of GDP (672.45 million TL), 54.13% of gross profit (136.11 million TL), and 53.12% of net profit (69.38 million TL). While increasing the capacity utilization rate could increase the firms’ gross and net profits, while this can decreases the production costs. Realising feasible investments and expanding to international feed markets could contribute significant benefits for the feed factories by preventing economic losses and increasing their competitiveness.