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The Economic Organization of U.S. Broiler Production

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  • MacDonald, James M.

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.

Suggested Citation

  • MacDonald, James M., 2008. "The Economic Organization of U.S. Broiler Production," Economic Information Bulletin 58627, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:58627
    DOI: 10.22004/ag.econ.58627
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    Cited by:

    1. Davids, T. & Meyer, F.H., 2017. "Price formation and competitiveness of the South African broiler industry in the global context," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 56(2), March.
    2. Baines, Joseph, 2017. "Accumulating through Food Crisis? Farmers, Commodity Traders and the Distributional Politics of Financialization," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(3), pages 497-537.
    3. 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(4), pages 1-14, November.
    4. 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.
    5. Bolotova, Yuliya V., 2022. "Price-Fixing in the U.S. Broiler Chicken and Pork Industries," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(4), September.
    6. Hoppe, Robert A. & MacDonald, James M., 2013. "Updating the ERS Farm Typology," Economic Information Bulletin 147120, United States Department of Agriculture, Economic Research Service.
    7. Devkota, Nirmala & Paudel, Krishna P. & Parajuli, Shanta, 2009. "Broiler Producers’ Willingness To Pay To Manage Nutrient Pollution," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46825, Southern Agricultural Economics Association.
    8. Bolotova, Yuliya V., 2024. "Production Contracts and Buyer Market Power in the U.S. Broiler Chicken Industry," 2024 Annual Meeting, July 28-30, New Orleans, LA 344127, Agricultural and Applied Economics Association.
    9. MacDonald, James M. & Wang, Sun Ling, 2009. "Subtherapeutic Antibiotics and U.S. Broiler Production," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49198, Agricultural and Applied Economics Association.
    10. Tallentire, C.W. & Mackenzie, S.G. & Kyriazakis, I., 2017. "Environmental impact trade-offs in diet formulation for broiler production systems in the UK and USA," Agricultural Systems, Elsevier, vol. 154(C), pages 145-156.
    11. Key, Nigel D. & MacDonald, James M., 2008. "Local Monopsony Power in the Market for Broilers - Evidence from a Farm Survey," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6073, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    Farm Management; Production Economics;

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