Empty House

[taiwan_girl]

Sad. Is there a decrease in demand for chickens in the US? Or are other "growers" growing more chickens for the company.

Bundren said Tyson verbally promised him years of steady pay if he took out the loans needed to purchase chicken barns. Now, the rug has been pulled out from beneath him.

Unfortunately, big business doesnt really care. Easy to say now, but he should have gotten it in writing, but i am guess that if he asked for something like that, it would have been refused.

[Jolly]

Tyson says sales are down and they are closing the less efficient plants. I think they've closed six or seven in the last couple of years.

But that makes me wonder...In an economy where grocery prices have gone up a good bit, consumers will usually turn to cheaper meats. Seems like chicken would be the last meat in the butcher's case to suffer declining sales.

[taiwan_girl]

I agree. Unless people are just eating less meat in general.

[Jolly]

Also true.

[LuFins Dad]

Most of Tyson’s output is processed nugget crap. People are moving away from that, even poorer people.

[Axtremus]

Tyson may lower its production, but if the overall chicken consumption holds, the chicken farmer should still be able to sell his chicken to someone other than Tyson. There's probably more to the story than was reported.

[Axtremus]

From the article:

Like almost all broiler chickens in the country, his were raised under contract for a major poultry company. Many chicken growers only grow for a single company as more than half of contract chicken growers live in a region with two or fewer companies, according to a 2012 Journal of Agricultural and Applied Economics study.

"Many chicken growers only grow for a single company" ... lack diversification.

[taiwan_girl]

@Axtremus said in Empty House:

"Many chicken growers only grow for a single company" ... lack diversification.

But each company has a specific way of doing things. Maybe size of pens, maybe type/source of food. Kind of like a phone factory switching form Iphone to Samsung. It could be done, but not easy and not cheap.

And there is probalby some sort of exclusive sales agreement. The farmer agrees to sell to only Company X.

[Copper]

@Axtremus said in Empty House:

"Many chicken growers only grow for a single company" ... lack diversification.

The chicken industry might be a good match for the MIT DEI team.

[Jolly]

@Copper said in Empty House:

@Axtremus said in Empty House:

"Many chicken growers only grow for a single company" ... lack diversification.

The chicken industry might be a good match for the MIT DEI team.

Well...I get your fecal reference.