Current methods for feed formulation are based on minimizing costs, not maximizing profits. Complex models of bird growth and reproduction as functions of genetic, feed and other environmental variables are being developed, but their adaptation has been slow. The development of profit maximizing models will evolve to center on the production functions of broilers and layers. The production functions are the relationship between the value of products (mainly meat and eggs) and the cost of feed. The production function is the tool used to maximize profits subject to all the various inputs, not just feed or nutrition. The production function is subject to the law of diminishing returns. The most profitable output levels are those where the marginal value (price) of the meat or eggs is just equal to the marginal cost of the inputs including feed, housing, processing and all other costs. Anything that affects the production function, bird genetics, feed quality, housing and environment, will be considered to maximize profits for the poultry firm. The profit maximizing models of poultry firms will improve as various technical improvements are made: metabolizable energy to describe ingredients will evolve to net energy systems that consider that the heat production (and therefore energetic efficiency) of broilers is different depending on the ingredients used to formulate the feed and the environmental temperatures under which they are reared. Amino acid needs will include a method to find the birds' needs for the nonessential amino acids. "Digestible" amino acid assays will differentiate between digestion and absorption to best balance various sources. The carbohydrate fractions of feed ingredients will be determined to optimize the use of exogenous enzymes. The value of meat and egg co-products will reduce overall costs (e.g., organic fertilizer for crop enhancement). Future profit maximizing production models will be ever evolving processes where field conditions and results are continually being utilized to re-calibrate the technical models so that the management team can use them with cost and return projections to decide on the best choices of inputs and outputs.