TREND AND SEASONAL FLUCTUATIONS IN BROILER PRICES 



Broiler prices were one of the basic determinants of returns to con- 

 tract growers. Processor-integrators in New England usually determined 

 the value of contract-grown broilers by using the quoted wholesale price 

 of eviscerated broilers on the New York market and deducting a margin 

 that covered assembly, processing, distribution, and variations in quali- 

 ty. This value was also used as a bid price by integrators if they required 

 more broilers than were being produced by their contract growers. 



Broiler prices in the past few years have been declining. Figure 8 illus- 

 trates the linear regressions for the New York wholesale price of Maine 



Figure 8. Prices for Live Broilers Sold in Northern New England and 

 Maine Processed Broilers Sold in New York City, 1957-1959* 



3.8- 



3.2 



o 



Q. 



£2.6 

 Q_ 



CO 



o 



NEW YORK WHOLESALE PRICE 

 Y= 36.55 -04X 



LIVE WEIGHT PRICE 

 Y= 19.87 -.023X 



2.0- 



.4 • 



-X. 



1957 



1958 



1959 



processed two and three-quarter pound eviscerated broilers and the live- 

 weight price of broilers in northern New England. The wholesale price 

 has been declining at a greater rate than the live-weight price. This indi- 

 cates that the integrators have reduced their margins. 



Broiler prices fluctuated seasonally, reflecting shifts in consumer 

 preference and an inability of integrators to accurately foresee these 



* Live weight prices, Thursday quotations, for broilers sold in northern New Eng- 

 land, Dairy and Poultry Market Neivs, Agricultural Marketing Service, U. S. Depart- 

 ment of Agriculture, and eviscerated prices, Maine processed two and three-quarter 

 pound broilers, Wednesday quotation, Producers' Price — Current, Urner-Barry Co., 

 New York. 



18 



