Six major processors of poultry were in operation in Maine. All six 

 were vertically integrated with growers or allied with other types of in- 

 dustry that are integrated with growers. There was no wide-scale pro- 

 duction of hroilers hy independent producers in Maine. One major pro- 

 cessor was in operation in New Hampshire. This firm did not rely on 

 vertical integration as a major source of hroilers but acquired its supply 

 primarily from other integrators or independent producers. 



Vermont had one processor. This plant was smaller than those in 

 Maine. Part of the supply of broilers was obtained from integrated 

 growers while the rest was purchased from independent producers. Only 

 one processor was considered from northern Massachusetts. This plant, 

 owned by a cooperative, was vertically integrated with growers until 

 1959. Since then, this plant has relied on independent producers for a 

 supply of broilers. 



Historically, the assembly and transportation of broilers has been a 

 function of the processor or integrator. These firms did not hestitate to 

 go as far as 100 miles for broilers, and such large supply areas for indi- 

 vidual firms virtually made all of New England a common source of 

 broilers. However, with the depressed economic conditions of the indus- 

 try during 1959, integrators adopted some cost-saving methods, one of 

 which was to reduce the supply radius. No doubt, some growers were 

 eliminated from the supply areas of all firms and consequently had to 

 shift their resources to other alternatives. 



Figure 6 illustrates 50-mile radius supply areas for the nine process- 

 ing plants in northern New England which was typical of conditions in 

 1959. 15 Note that only two firms in Maine were able to gain partially 

 exclusive supply areas. All the firms competed against one or more other 

 firms for a supply of broilers. Thus, a contract grower could readily 

 shift from one integrator to another. Unless all firms cut back, one pro- 

 cessor could not reduce payments to growers without expecting to lose 

 them to another firm. 



The two firms in New Hampshire and northern Massachusetts had to 

 compete for a supply not only against each other but also with a large 

 group of small live buyers and slaughterers from the metropolitan areas 

 of Boston and surrounding cities and a few of the Maine processors. 

 Furthermore, this same area was also a large source of table eggs and 

 highly industrialized. It is very doubtful that these firms were in a posi- 

 tion to dominate even if they resorted to complete vertical integration. 



The processing firm in Vermont did possess what could be considered 

 an exclusive supply area. Furthermore, much of the supply area was not 

 industrialized and was not a developed source of market eggs, so few al- 

 ternatives for growers existed. This area was an intensive milk produc- 

 ing area, and some of the dairymen could produce broilers for this plant 

 as a supplement to their incomes from milk; but it would be difficult 

 for many full-time broiler producers to shift to dairying as a source of 

 income. 



15 Rogers, G. B. and Bardwell, E. T., unpublished data, New Hampshire 

 Agricultural Experiment Station, 1959. 



14 



