I drove to North Carolina and ended up in the kind of place that supplies practically all of our chickens: a metal-sided, 500-foot-long structure near the town of Fairmont.
In the dim light, I see 30,000 little chicks scuttling around on the floor. "They're 12 days old," explains Craig Watts, who's growing these birds for Perdue Farms.
Perdue owns the chickens. It also supplies the feed that they eat. About a month from now, when the birds have grown to about 4.5 pounds, the company will send a truck to carry them away, and Watts will get paid. But he never knows how big his check will be.
"It's like that test you took in school — you kind of want to know how you did, but you really don't? It's that kind of feeling," he says.
The uncertainty is part of a peculiar payment system that the chicken industry uses. It's often called a tournament. Critics say it's more like a lottery.
The companies set an average price that they will pay for raising the chickens — in this case, 5 cents per pound. But some farmers will get more than that, and others less, depending on a formula that measures their performance. It's mainly based on feed efficiency: how much weight the chickens gained, compared to how much feed the company supplied.
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18 comments:
I would suggest everyone read The Meat Racket.
It's easy to get into this business but hard to get out. The numerous chicken farms for sale on the eastern shore some for years are proof. The farmers are caught in a trap. Once they sign the contract and take on the huge debt they either have to raise chickens or go bankrupt. It's just not a good business decision for them getting tied to an entity they have no control over. It's no wonder so many who applied for permits lately are Asians and Muslims.
Good Lord, what a vapid article from a more vapid "reporter."
as soon as I saw the NPR logo, i knew i was in for a treat.
so, they go find some loser chicken grower and decide his views represent the majority?
what a load of bull.
you could tell just by looking at him, and especially the condition of his houses, he is one of those bottom dwellers that would rather complain about "fairness" than actually invest time cleaning the place and doing what needed to be done.
i've seen it many times before, daddy gives him a farm, he builds some houses, everything is good for awhile, he loses interest, and performance falls. he's too involved with other things to worry because he still gets his New House Guarantee. Oh what, the reporter didn't mention that? hmm.
it's these kinds of hit pieces that are pushing more and more people away from the so called news organizations.
even the reporter answered his own question, why would thousands of people be lined up to add to their existing farms, or want to build new?
you can't make this stuff up, liberalism is a mental disease and needs to be eradicated.
I remember a chicken farmer that has since passed away - informed that he was making very good money when the chicken auction was held. That's right - before Perdue, Mountinaire, among others - the farmer supplied his own grain, chicks, and housing. Then - when the birds were big enough they were auctioned off. And the price the chicken farmer received was far higher than what he is being paid today.
I have heard about the chicken auction from numerous farmers since then - and they all said that they made very big money in comparison to the amount they receive today.
IMHO - the current set-up whereby the grower controls the heating fuel, food conversion, biddies, - it is a form of racketeering - and ought not be allowed.
You need to know what you are talking about 3:17. Chicken farming like this isn't profitable as evidenced by the numerous government grants the farmers receive. Tax payers are paying for manure sheds, cement pads, composters, cover crops and other handouts needed to make ends meets. Go to MdLandRec.net and look for yourself how these places are refinanced over and over. They are not profitable. They are just treading water and staying afloat. As soon as they stop accepting tax payers money can there ever be a defense of the industry.
"It's hard to know how many contract farmers agree with Postles. In one survey of poultry farmers in Delaware, three-quarters of those who responded were satisfied with their arrangement. But more than half of them also said that, in their opinion, the companies will retaliate if a farmer raises concerns. Many farmers didn't respond to the survey, which was commissioned by the chicken industry and conducted by the University of Delaware."
The fact that more than 1/2 of the farmers responding said they fear retaliation is telling. This goes to what I heard about them actually liking the proposed litter act but are fearful of getting black balled by the companies if they publicly say they are for it.
I doubt if there are 1000's lining up 3:17. Most are foreigners anymore. True about tax payers paying for this. A Muslim guy told us that other area Muslims say he's stupid for opening a restaurant because the government won't pay for your pizza oven but it will help you if you want to chicken farm and convenience stores are too dangerous. So they are getting into chicken farming. They see it as temporary because they know their children will grow up to be the next doctors and engineers and the parents won't need to do the low paying type of farming this is anymore.
3:17pm you obviously know nothing about chicken farming by your ridiculous uninformed rant. New house contracts are for a very limited time and are null and void if you change poultry companies. They have total control on the type of birds you get,no matter how good you are if you get bad birds your in last place. Many times my check didn't even cover my loan let alone utilities and expenses. You lose you job over something out of your control oh well the same with poultry farming you lose everything your house your land your livelihoods. Stick to your government job they way you talk obviously a democrat who lives off the I'll informed lies from the establishment.
A lot of Asians too were on the list of whose applied for chicken house permits which can be viewed on the MDE website. Unskilled immigrants. So that means they are willing to work very hard for very little money. I agree with 4:23 I know a few chicken farmers and they all say it isn't worth it at all and wish every time it snows or there is a storm their houses would collapse.
4:23
Where do those birds the farmers get come from, and where do they go?
maybe instead of opening your mouth, you take your tons-o-money and create a poultry operation to feed the world and then, pay whatever the growers demand or what you think they should get, because you are so smart.
you wouldn't last a week.
you can sit there on your pedestal and claim you know what you're talking about, but you are the one who doesn't have a clue.
You're the type when asked where your food comes from, you say the grocery store.
The poultry companies have invested tens of millions of dollars on infrastructure. Actually billions. You think that money grows on trees?
Don't you think a company deserves to make a profit to pay for that stuff?
obviously not because you jabber about the poor performing growers.
I could give you a list of 500 growers right now that always perform well. They like the fact there are poor performers because they make more money.
I guess you're one of those "level the playing field type" and "everybody gets a trophy."
please do us all a favor and refrain from commenting on something you obviously know so little about.
For the majority who apparently aren't up to date on these grower contracts...this process of grower pay is heavily scrutinized by GIPSA (Packers and Stockyards) the poultry companies are often inspected and complete review of the process is conducted, feed deliveries traced, bird health reviewed, etc.... The growers themselves know this and have the right to request a review.
Anon 7:02,
Couple quick questions.
Just because the poultry companies invested billions of dollars on their facilities, why is it OK that these companies take billions in indirect taxpayer money?
What would happen if these companies would up and leave? It would hurt for sure but not that bad. Most of the good paying jobs are filled by people who moved here for that job, they would simply go back to their hometown. The majority of locals who work for the industry are paid so little they have government benefits as it is. The area would recover and be better off in the long run.
Now these "good" performers you mentioned, what are they doing differently than the "poor" performers? Nobody can answer that question. How can a grower settle first one flock and then on the bottom the next?
I have been to many farms that week after week the feed lines were empty, water lines way low, horrible ammonia 50-80 ppm but strangely always settled well. Been to many many farms were conditions are always perfect but could never get a good settlement. Explain that..
Anon 8:19,
You are full of it. GIPSA does requlate the contracts but they are not scrutinized like you say.
Example: The companies have different breeds of birds they put in the field.
Mountaire at one point had the "708" "Cobb" and all males that they were placing and settling all together.
Couple years ago Perdue had 5-6 different breeds in the field all settling together. I have an email from one of their grow out managers to the service people stating that one of the breeds was doing "fantastic" compared to the others. How would you like to be the growers who did not have the "fantastic" breed?
Allen's utilizes two different breeds also.
Explain again how heavily GIPSA regulates.
The poultry industry from its start has been a bad actor but as light is really starting to shine on them instead of cleaning up their act they are stupidly doubling down on their dishonesty and bad actions. They can't seem to figure out why they are starting to lose every battle and will continue to lose.
Why are the locals selling out in droves and the foreigners moving in?
7:02 we don't need to be worrying about feeding 'the world'. Only us. The 'world' is laughing their butts off at you morons. They import cars, electronic, etc to here and we export chickens and all the while turning our land into a toxic waste dump which they don't allow. No wonder this country and esp this area is in the poor economic shape that it's in, Special interest politicians elected by low information people like 7:02.
"Don't you think a company deserves to make a profit to pay for that stuff?"
You are a special kind of simple. Of course companies deserve to make a profit, Einstein. Can your little brain understand that it's real easy to make a profit when tax payers are footing the bill. When you pay your employees so little that tax payers are supplementing their income through welfare benefits. When you pay your contract farmers so little they get government tax payers grants to build their operations. The list is ongoing on the handouts received in the industry.
But keep on with your rants. It's actually amusing to read and gives intelligent people an insight as to why this area is the most economically depressed in the region. It's like zero logic and forward thinking skills around here. Everyone thinks chicken is inexpensive when the hidden costs really raise the price up astronomically. Naive people fooled by the illusions created.
It's like Walmart when you look at the big picture. Walmart's not really a success story because they are tax payer supplemented. Not only in the welfare benefits their employees receive but the money they receive from benefits. Walmart lobbied hard for the food program entitlement expansions. THey've been hit hard when the expansion limit was up. Maybe why they are closing stores?
Fyi 7:02 I know exactly what I'm talking about. I had a farm of my own so did my parents and grandparents. I lost mine along with my house and all my property. My parents had to sell their's to the same government financed Asian family. Who said they had to turn over their restaurants to another family member because of the deal they get with the government. They received 0 percent financing built even more on the farm when we couldn't even get loans to stay afloat.so keep thinking your so smart if you look around the days of the American farmer have past. Asian,Muslim and indian farms are the only ones growing local farmers losing generations of history and land.
oh poor 8:10
are your liberal panties in a wad?
Why don't you grow your own food Einstein?
maybe because you can't, so you rely on others to do it for you, and complain about it like it's your right.
Nobody said life is fair Einstein. But apparently you are sooo much smarter than we eastern shore folk.
why don't you take your genuisness and go back to where it is you came from, which i'm sure is within walking distance to a Whole Foods.
i guess poultry companies should pay whatever wages and compensation the Einsteins of the world like you can dream up?
And of course paying those higher wages to growers and employees will benefit them because the price of food won't go up at all. I guess that's how it works in a socialist utopia where you seem to spend your time.
well listen up Einstein, if you raise wages by force of government, you will make it even harder for people to make a living, because the poorer people will lose those lower paying jobs due to companies choosing to either shutter and move someplace more favorable, or stay and raise the price of their products.
If company A has to raise prices to fulfill those higher costs, and company B next door doesn't, company A will go out of business, Einstein. It's called the FREE MARKET Einstein.
But then again, you obviously don't like that word, FREE.
You'd rather stand on your fairness pedestal and and scream to the rooftops... LIFE IS NOT FAIR!!! RAISE WAGES!!! INCOME EQUALITY!!! all the while knowing your Mercedes is due for a service check and your swimming pool needs cleaning.
I am so sick of pandering fools like you Einstein that it makes me want to vomit.
Take sure self-righteousness and holier-than-thou attitude to the nearest bridge and jump off.
8:02 they just don't get it and they never will. This is why the area is depressed and always will be. They are real good at screaming liberal when one of the most conservative US senator Ted Cruz is saying the same thing as those of us who are opposed to this type of corporate welfare are saying.
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