Unformatted text preview: ten have no choice but to find a new line
of work. A processor can terminate a contract with a grower whenever it likes. It owns the birds. Short of that punishment, a processor can
prolong the interval between the departure of one flock and the arrival of another. Every day that poultry houses sit empty, the grower loses
The large processors won’t publicly disclose the terms of their contracts. In the past, such contracts have not only required that growers
surrender all rights to file a lawsuit against the company, but have also forbidden them from joining any association that might link growers
in a strong bargaining unit. The processors do not like the idea of chicken growers joining forces to protect their interests. “Our relationship
with our growers is a one-on-one contractual relationship…,” a Tyson executive told a reporter in 1998. “We want to see that it remains that
THE FOUR LARGE m eatpacking firms claim that an oversupply of beef, not any corporate behavior, is responsible for the low p...
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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