ABSTRACT

Poultry companies in the United States are vertically integrated. This system allows the same entity (e.g., company, cooperative, etc.) to own several (or all) steps of the production process from breeding through processing (Figure 1.1). Vertical integration ensures maximum efciency and uniformity. By reducing the number of times a component of the production system (feed, chick, labor, etc.) changes ownership, the prot charged at each level of change can be eliminated. Some poultry companies have taken the concept of vertical integration to a higher level by growing their own grain and purchasing interests in the breeding companies. Improved uniformity is another benet that results from all parts of the production system having a common goal, a common set of specications, and a common system of oversight.