PoultryUSA - September 2017 - 24
24 ❙ WATTPoultryUSA
US POULTRY PRODUCTION
US broiler production, 1940-2020
x 1 million metric tons
Source: Dr. Paul Aho
integrated) production stages under one enterprise.
Jesse Jewell opened his own
hatchery in 1940. That was soon
followed by a processing plant and
feed mill. He left the growing of the
chickens to contract growers. For a
time, he was the largest vertically
integrated producer in the world.
While the structure of the industry was under radical revision,
the location was changing as well.
The Midwest and most of New
England were abandoned as the industry became vertically integrated. The Southeast rose to broiler
production prominence by capitalizing on the novel vertically integrated structure and unmatched
advantages of low-cost land, labor
and transportation services.
This phase of industry development was highly innovative on the
production side of the business but
not so much on the marketing side.
Iced, whole broilers were brought
out onto the dock of the plant
The adoption of vertical integration and the application of scientific
production and marketing techniques made chicken a bountiful and
low-priced meat protein.
(remember the old Georgia Dock
price?) and sold for whatever the
market would offer.
While many of the stages of
production were swallowed up by
the vertically integrating industry,
the remaining ancillary industries
outside of the poultry firms were
growing rapidly. These included
primary breeding and pharmaceutical companies as well as host of
other companies related to poultry
equipment, agricultural lending,
specialized vehicles and many others (even economists!).
transformed poultry industry
The next phase of the industry started when chicken companies turned
seriously to the question of marketing.
One of the key components of market-
100 years of US poultry industry progress, 1917-2017
Economies of scale
Whole, parts, further
Proteins of all kinds
Small, commercial flocks Thousands
Source: Dr. Paul Aho
In their transformation to food companies, poultry businesses will be more global and, to satisfy economies
of scale, very large.
www.WATTAgNet.com ❙ September 2017