Overview

Broilers, young chickens bred for meat, account for nearly all U.S. chicken consumption. U.S. production of broilers grew rapidly until the mid-1990s, but growth then began to slow and production declined in 2009, with very modest growth since then. The industry's distinctive organization-with a high degree of vertical integration, nearly complete reliance on contract growers to raise chickens for poultry companies, and grower compensation based on relative performance-helped fuel growth in the early period, and growth provided good returns and low risks for growers. However, slowing growth has placed new financial pressures on the industry and its organization. The industry is the subject of several important policy debates relating to competition, environmental regulation, international trade, and public health, which require an understanding of its organization. This report uses comprehensive USDA survey data to delineate the key features of the industry's organization and to analyze the industry's recent financial and productive performance, with a focus on contract growers.

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9781502862044

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