The economic organisation of US broiler production
In the US, broiler production 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, reports the USDA.
It is further reported that 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
The USDA has now released a report based on a large and representative
survey of broiler operations, describes the industry's organisation, housing
features, contract design, fees and enterprise cost structures, and farm and
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