Structure of the Present Assembly System 



The present assembly system in New England is a mixture of the 

 old and the new. The older system is characterized by decreasing oper- 

 ations and a pessimistic outlook as numbers of small slaughterers, live- 

 poultry stores, live-poultry buyers, terminal market live-poultry re- 

 ceivers, and city dressing plants dwindle. The newer types of firms have 

 gained at the expense of the older types as well as through extensive 

 use of contract production. The forces which have produced the changes 

 in the assembly system are still operating, but the question of predomi- 

 nance has long since been decided. 



Most meat chickens now are produced under contract arrangements 

 with large processors, feed companies, hatcheries, and independent con- 

 tractors. This development has increased control of these firms over 

 production and sales practices. Large processors, the contract haulers 

 they employ, and contractors who also haul live poultry have become 

 more important in recent years as assemblers of live poultry. Many 

 large processors and contractors formerly were buyers of live poultry 

 and other former independent live-poultry buyers have affiliated with 

 specific processing plants as contract haulers. 



The small poultry farms of the past, largely selling fowl, were ser- 

 viced mainly by small-volume assemblers. But the substantial decline 

 in the number of poultry farms and an increase in their average size 

 have reduced supplies available to the small assembler. Such firms 

 usually are unable to handle large lots and larger assembly firms have 

 evolved. Average size per lot acquired rises substantially with increas- 

 ing firm size. This occurs in part because of the decline in lots per 

 farm as emphasis shifts from fowl and related classes'^ toward broilers 

 and other commercial meat chickens.-^ Many egg producers practice 

 periodic culling, selling frequent small lots plus one large lot when the 

 balance of the flock is liquidated. In contrast, meat chickens are grown 

 on a regular schedule, with several large lots per year per farm. 



Yet small firms are important in gathering such small and scattered 

 lots of poultry which remain, particularly in non-commercial poultry 

 producing areas. In addition, the older types of assembly firms such as 

 live-poultry buyers, live-poultry stores, and small slaughterers are still 

 important in supplying customers who prefer to examine live birds at 

 the point of slaughter. 



Figure 1 diagrams the channels through which New England live 

 poultry moves during the assembly process. 



Types of Assemblers Defined 



Most assemblers carry on several marketing functions in addition to 

 hauling poultry. These may include buying and selling, contracting, 

 growing, processing, and distributing. However, for each type of firm 



2 Included in this group are hens culled during or sold at the end of the egg- 

 laying period, roosters, cull pullets, and some young chickens, mainly surplus cock- 

 erels from egg strains of birds. Since fowl account for the major share of volume, 

 this group is hereafter referred to in this report as "fowl." 



3 Included in this group are broilers, fryers, roasters, caponettes, capons and pullets 

 grown strictly for meat purposes. Since broilers account for the major share of 

 volume, this group is hereafter referred to in this report as "broilers." 



