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The Economic Organization of U.S. Broiler Production

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  • MacDonald, James M.
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    Abstract

    Broiler production in the United States is coordinated almost entirely through systems of production contracts, in which a grower’s compensation is based, in part, on how the grower’s performance compares with that of other growers. The industry is undergoing a gradual structural change as production shifts to larger broiler enterprises that provide larger shares of an operator’s household income. Larger enterprises require substantially larger investments in broiler housing, and new or retrofitted houses are also an important source of productivity growth in the industry. This report, based on a large and representative survey of broiler operations, describes the industry’s organization, housing features, contract design, fees and enterprise cost structures, and farm and household finances.

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    File URL: http://purl.umn.edu/58627
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    Bibliographic Info

    Paper provided by United States Department of Agriculture, Economic Research Service in its series Economic Information Bulletin with number 58627.

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    Date of creation: Jun 2008
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    Handle: RePEc:ags:uersib:58627

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    Related research

    Keywords: broilers; chickens; production contracts; broiler grower financial performance; chicken housing; chicken litter; poultry; Farm Management; Production Economics;

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    Cited by:
    1. MacDonald, James M. & Key, Nigel D., 2012. "Market Power in Poultry Production Contracting? Evidence from a Farm Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(04), November.
    2. Hoppe, Robert A. & MacDonald, James M., 2013. "Updating the ERS Farm Typology," Economic Information Bulletin 147120, United States Department of Agriculture, Economic Research Service.
    3. Andrew Manale & Cynthia Morgan & Glenn Sheriff & David Simpson, 2011. "Offset markets for nutrient and sediment discharges in the Chesapeake Bay Watershed: Policy tradeoffs and potential steps forward," NCEE Working Paper Series 201105, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2011.

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