With a chicken contract you do not own the birds or feed. You are paid on a sliding scale based on feed conversion rates. So the guy that raises big birds on little feed gets paid the best. Some like it some complain about it; but all went into the contract knowing the terms so if they go bankrupt so be it. Sounds like a win; win situation for the grocery shopper as it causes low chicken prices at the store and weeds out poor growers.
The problem is....... If some pencil pushing big wheel gets a idea that this new thing reduces feed cost per pound of bird; the farmers are forced to install this new idea; at a cost to the farmer; before the next batch of chicks will be sent out.
Lets just say you have a pig contract. Everything is going good. Then threw research they find out that pigs gain more weight on less feed by doing XXXXXXX You are then told to install XXXXXXX or you will no longer be one of our growers. Now you have a problem. You have a building half paid for so you need to stay in the business; but installing XXXXXXX reduces your income below a level you are willing to except. They just changed your contract mid flight and there is nothing you can do about it.
It would be like a grain elevator saying we do not want your corn if you use expensive John Deere tractors or grow it on land that does not produce 200 BPA.
I'm not in the business so I only know what I read; but contract raising seems like a win win for the big companies; and a manure pit for the farmer.
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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