Summary 



New Hampshire provides about 15 percent of poultry meat receipts on the 

 Boston market. The proximity of this market allows producers an advantage 

 in shipping live poultry, but the marketing of dressed birds runs into com- 

 petition from areas all over the United States. 



In examining the major costs of production and marketing in these 

 competitive supply areas, the following characteristics were revealed: 



1. Baby chick prices are highest in the northeastern and western 

 states and lowest in the Midwest. Price disadvantages for New Hampshire 

 chicks, however, may be modified by quality considerations, and the PuU- 

 orum Clean flocks of the Northeast have higher production rates, lower 

 mortality, and more uniform growth rates than lower priced chicks from 

 the Midwest and South. 



2. Farm wage rates are lowest in the South and highest in the Mid- 

 west. The influence of farm wage rates must depend on the degree to which 

 labor is hired. Laying flocks of more than 3000 birds usually require addi- 

 tional help and New Hampshire specialized poultry farms are commonly in 

 this category, placing them at a disadvantage. The farm flocks of the Mid- 

 west are operated as part of the total farm operation and generally make 

 little use of hired labor. The lower wage rates in the South would place 

 them at an advantage, if labor productivity were the same as in other areas. 



3. There is great variation in housing construction costs, with the 

 Midwest being high in comparison with other areas. If the cost of building 

 is amortized over its life period, the difference between areas is negligible 

 per pound of meat or per dozen eggs produced. 



4. The farm price at which birds can be bought by processors is a 

 reflection of costs of production. Farm prices per pound of poultry meat 

 are generally higher in the Northeast, California, and the South than in 

 the Midwest and Northwest by as much as 10 cents per pound. 



5. Producers located close to the Boston market have an advantage 

 in shipping live poultry to Boston because of transportation charges and 

 shrinkage. The Midwest can ship eviscerated birds to Boston at a lower cost 

 than the cost to ship the grain equivalent for production in New England. 

 The alternative production opportunities in the Midwest, however, are 

 retarding an immediate expansion of the poultry industry to specialized 

 commercial flocks, thus reducing the competition for the eastern markets. 



6. The prices of commercial feed are relatively uniform through the 

 country. The use of these feeds, however, is more predominant in the grain- 

 deficit areas than in the grain-producing areas. In the latter, much of the 

 poultry feed is grown on the owner's farm or purchased locally and mixed 

 by the producer. This gives them an apparent price advantage. The com- 

 mercial feeds and specialized feeding methods available in the deficit areas 

 enable producers to feed to heavier weight in less time at reduced cost per 

 pound and also maintain higher fertility and hatchability. This tends to 

 counteract some of the advantages obtained by the proximity of grain 

 supplies. 



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