Relative Profitability of Alternative Procurement, Production, and Selling Programs for Broiler Processors: Based on Studies in the New England Area 1957-59

Excerpts from the report Preface: In the intensely competitive environment in which they operate, managers of broiler processing plants are continually seeking ways to operate at a profit. Recent studies have provided guidelines for improving the efficiency of assembling and processing operations. Application of such recommendations will aid managers in reducing costs and improving their competitive position. In some instances where processing is done by cooperatives, direct benefits from lower processing costs would accrue to grower-members. Growers would also benefit to the extent that private processing firms used savings from increased efficiency as a basis for improving their competitive position by increased payments to growers. This study evaluates, in terms of net returns at the processing level, some of the procurement, production, and selling programs plant managers can select. It also describes a method whereby plant managers can test the validity of the conclusions reached in this report against their present environment, or make periodic reevaluations as costs, prices, and structural relationships in the industry change. While this report is based on data from studies in the New England area, results are probably applicable to other areas to a large extent.