The Economic Organization of U.S. Broiler Production
by James M. MacDonald
Economic Information Bulletin No. (EIB-38) 33 pp, June 2008
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.
Keywords: Broilers, chickens, production contracts, broiler grower financial performance, chicken housing, chicken litter, poultry
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