Unformatted text preview: at the typical grower had
been raising chicken for fifteen years, owned three poultry houses, remained deeply in debt, and earned perhaps $12,000 a year. About half
of the nation’s chicken growers leave the business after just three years, either selling out or losing everything. The back roads of rural
Arkansas are now littered with abandoned poultry houses.
Most chicken growers cannot obtain a bank loan without already having a signed contract from a major processor. “We get the check first,”
a loan officer told the Arkansas Democrat-Gazette. A chicken grower who is unhappy with his or her processor has little power to do
anything about it. Poultry contracts are short-term. Growers who complain may soon find themselves with empty poultry houses and debts
that still need to be paid. Twenty-five years ago, when the United States had dozens of poultry firms, a grower stood a much better chance of
finding a new processor and of striking a better deal. Today growers who are labeled “difficult” of...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08