ABSTRACT
Broiler consumption has benefited during the last decade from consumers' interest in health and concern over dietary fat. Broiler production is concentrated in the "broiler belt" of states, which starts at the Delmarva Peninsula and swings down through the Southeast to East Texas. The broiler market has been one of the most unconcentrated industries in the food system. The most distinctive feature of the broiler industry, compared to other agricultural industries, is the degree of vertical integration the processors have achieved. Managers choose strategies based on their assessment of the market's basic conditions and structure. Firms in classic competitive markets offer managers little choice in matters regarding pricing and promotion. Since broilers have little product differentiation and market concentration is moderate, advertising expenditures should be relatively low. The broiler industry has a remarkable record in reducing the real costs of producing a pound of broiler meat through the discovery, implementation, and diffusion of improved technology and management.
