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U.S. Broiler, Turkey And Total Poultry Supply Response To Corn Feed Prices

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  • Hussein, Ahmed

Abstract

Corn constitutes about 60 % of the normal poultry diet, and the remaining ingredients are soybean meal(Leeson and Summers 2005). The feed cost represents about 70% of the operation cost shares in poultry production. So any increase in corn feed prices could potentially reduce the profit margin for poultry growers and consequently a reduction in the quantity of poultry produced and a higher price for poultry meat at the retail level. Most of the recent corn price spikes in the U.S has been partly due to ethanol production which consumes about 30% of U.S corn. This paper deploys Nerlovian partial adjustment model for broiler, turkey and total poultry production in the U.S. The previous period’s corn feed price elasticity of demand is greater in the long-run compared to the short-run across broiler and total poultry production. Meanwhile, turkey production shows higher adjustment speeds but lower short and long-run corn feed price elasticity of demand.

Suggested Citation

  • Hussein, Ahmed, 2017. "U.S. Broiler, Turkey And Total Poultry Supply Response To Corn Feed Prices," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252710, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252710
    DOI: 10.22004/ag.econ.252710
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    References listed on IDEAS

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    1. Marc Nerlove, 1979. "The Dynamics of Supply: Retrospect and Prospect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 874-888.
    2. Pothidee, Ajchara & Allen, Albert J. & Hudson, Darren, 1999. "Impacts Of Corn And Soybean Meal Price Changes On The Demand And Supply Of U.S. Broilers," 1999 Annual meeting, August 8-11, Nashville, TN 21602, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Stillman, Richard & Haley, Mildred M. & Mathews, Kenneth H., Jr., 2009. "Grain Prices Impact Entire Livestock Production Cycle," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-4, March.
    4. Marsh, John M., 2007. "Cross-Sector Relationships Between the Corn Feed Grains and Livestock and Poultry Economies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(1), pages 1-22, April.
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    Keywords

    Agribusiness; Production Economics;

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