The processing costs of the various types of fishery products were evaluated basedon a survey of 30 seafood processors.Processing costs for fishery products were relativelyhigh,ranging from NT$22.42/kg to NT$419.44/kg.In most cases,raw materials,labor,and energy expenses comprised the bulk of processing costs.The frozen seafood processing industry in Taiwan has been concerned about increase in these costs.To be competitivewith other countries in seafood expert markets,cost-cutting in the Taiwan seafood processing industry is highly desirable.Automation could improve production efficiency andcontribute toward lower processing costs.The cost function assessment indicated that theprices of raw materials,production volume,labor,and plant size were the significantfactors influencing the processing costs.