Little racer:
The poultry industry in Canada is vastly different than that of the US since there is not a quota system fo dairy and poultry and we don't have a Socialistic economic model for livestock production.
The $0.12 US that has been bantered around is the income received by a CONTRACT grower that grows birds for a poultry operation. In some systems the contractor is paid based on "bird spaces" and in others by the lb of birds produced per turn of the barn.
The large scale poultry and pork producers have chosen to use a business model that depends on expanding the number of animals produced rather than owning concrete and steel. To achieve large numbers they utilize contract growers that own the buildings, but don't have the risk of owining the livestock. Becoming a contractor has helped maintain farm families on their land through the rapid change in commercial agriculture. I personally am not a fan of the contractor system, but it has a significant value in today's agriculture.
I completed a Profit/Loss comparison for one of my large swine customers last week. He places 1,000 pig groups each week and the projection showed a $55,000 LOSS for current groups. However, the contractor was guaranteed to receive $42/pig space this year. WE have shifted the risk.
Jim
[Editted for spelling and clarity"\\]
The poultry industry in Canada is vastly different than that of the US since there is not a quota system fo dairy and poultry and we don't have a Socialistic economic model for livestock production.
The $0.12 US that has been bantered around is the income received by a CONTRACT grower that grows birds for a poultry operation. In some systems the contractor is paid based on "bird spaces" and in others by the lb of birds produced per turn of the barn.
The large scale poultry and pork producers have chosen to use a business model that depends on expanding the number of animals produced rather than owning concrete and steel. To achieve large numbers they utilize contract growers that own the buildings, but don't have the risk of owining the livestock. Becoming a contractor has helped maintain farm families on their land through the rapid change in commercial agriculture. I personally am not a fan of the contractor system, but it has a significant value in today's agriculture.
I completed a Profit/Loss comparison for one of my large swine customers last week. He places 1,000 pig groups each week and the projection showed a $55,000 LOSS for current groups. However, the contractor was guaranteed to receive $42/pig space this year. WE have shifted the risk.
Jim
[Editted for spelling and clarity"\\]
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