An analysis of contract broiler production in Tennessee

The purpose of this study was to (1) obtain a description of broiler growers and their enterprises in Tennessee, (2) to determine the provisions of the contracts being used, and (3) evaluate grower attitude toward, and degree of satisfaction with, existing conditions in Tennessee's broiler industry. A random sample of 88 Tennessee broiler growers and the managers from all four of the agribusiness firms located in Tennessee which were involved in contract broiler production in the state were personally interviewed. The average broiler grower was almost 47 years old, had a ninth-grade education, and over 9 years' experience producing broilers. He averaged starting into production about 74,663 chicks in 1976 and earned an income of about $6,100 from this production. Overall, the growers were not satisfied with their contract. Only about 45$ of the growers in the sample gave their contract a favorable rating. Almost 46% of them did not think they received an equitable payment. Almost 14% of the broiler growers interviewed indicated they planned to discontinue broiler production. Different perceptions of broiler production contract provisions by growers and contractors may lead to production and marketing ineffi-ciencies. Several broiler production contract provisions were identified in this study which growers and contractors perceived differently. These differences in grower and contractor perceptions of broiler production contract provisions indicate a need for improved communication between these two parties and for changes in contract provisions.