Data for this analysis covers 71 flocks of one breed produced by 22 

 growers over a 1-year period. Analysis of variance of the data indicated 

 no significant differences in the 22 production units. 13 Consequently, 

 these production units producing a single breed are sufficiently standard- 

 ized to produce a given average weight of bird over a given period of 

 time even though significant differences in feed conditions do exist. 14 



Institutional Factors Relating to 

 Broiler Growers 



The development of a specialized poultry meat industry has changed 

 the structure of the poultry industry. Previously, there were many small 

 farm producers, live buyers, and small city slaughterers. The processing 

 and supply firms resorted to vertical integration. Today, an estimated 

 95 percent of the broiler growers in northern New England are vertical- 

 ly integrated. 



SHIFTS THAT HAVE OCCURRED IN DECISION MAKING POWER 



A considerable number of shifts have occurred in decision-making 

 power as a result of vertical integration. At present, there seems to be 

 little difference between integrators in the degree of decision-making 

 power they possess concerning the production of broilers. 



Variable Inputs 



Processor-integrators interviewed indicated that they made all deci- 

 sions concerning variable inputs once made by the independent broiler 

 grower. The integrators determined what breed of broiler was produced 

 and what types of feed were used. Integrators also negotiated for and 

 paid for the supply of fuel, litter, grit, medicines, and generally, electrici- 

 ty. They also paid for insurance premiums on the broilers. One inte- 

 grator indicated that he also supplied the disinfectants required for 

 cleaning broiler houses between flocks. 



Most of the integrators obtained their supplies of these inputs from 

 other firms. However, several of the large integrators owned and oper- 

 ated hatcheries for a supply of broiler chicks and some owned and oper- 

 ated feed milling facilities which supplied their requirements for feed. 

 Integrators derived some economies through mass purchasing or pro- 

 duction of supplies which independent broiler producers were not able 

 to equal. 



The contract grower generally supplied very few variable inputs. A 

 few of the larger contract growers in the firms studied hired labor, but 

 most relied on their own and their family's labor. Growers determined 

 how to dispose of the manure during the clean-out period between flocks. 

 They also had to supply water, disinfecting materials, and, in a few 

 cases, electricity . 



13 See Appendix Table 8. 



14 See Page 9. 



12 



