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Answer all four based on the posted report, “The Business of Broilers,” 2013, by The Pew Charitable Trusts.
- Some facts about the broiler sector: (i) How many broiler operations (farms) are there today (using 2007 data)? (ii) How many chickens go through an average broiler operation (farm) each year? (iii) For how many days does the average broiler live before it’s “harvested”? (iv) How many pounds of feed, on average, are used to produce one pound of live (chicken) weight? (v) How many milligrams of antibiotics are used to produce one kilogram of chicken meat, on average?
- The Broiler Belt: (i) Describe the region known as the “broiler belt” and/or list the states in the broiler belt. (ii) Provide at least three reasons, mentioned in the report, for why the broiler belt has emerged as the dominant production area despite the fact that it is generally considered a “feed-poor” region.
- Vertical Integration and Contracts: (i) In broiler production, what assets does the “integrator” own and what services does it provide? (ii) What assets does the grower own and what services does he or she provide? (iii) Who (integrator or grower) own the chickens that die during the grow-out process and who control the flock numbers and flock-placement timing?
- Grower Payment: (i) Explain how the tournament-style payment system works from the broiler grower’s perspective. (ii) What are some pros and cons (from both the integrator’s and the grower’s perspectives) associated with the tournament-style payment system?
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