Poultry companies suck

[JABIII]

And water is wet. Another reason to grow your own...

The scheme keeps farmers in a state of indebted servitude "living like modern-day sharecroppers on the ragged edge of bankruptcy," the lawsuit filed on Jan. 27 says, quoting from the 2014 Christopher Leonard book "The Meat Racket: The Secret Takeover of America's Food Business."

Class action lawsuit against largest poultry companies...

http://bigstory.ap.org/article/93141...b488ba18d3e59a

[turbo]

While I'll agree with you, those farmers had a choice to sign on that dotted line.

[duckman88]

That is interesting, with my job, I have assisted with some work on valuation of chicken farms and the ones that I have helped with were quite lucrative for the amount of work required by the farmer. These farms had contracts with more local processors but based on discussions with the farmers, yes on the front and back end of production they had some long days but most had a couple of Mexicans doing the vast majority of the work and they made good money. My experience is obviously limited but based on the discussions I had with farmers, everything is provided for you and automated. Is my experience in the minority?

[jfields47]

"The farmers said in the lawsuit their net incomes ranged between $12,000 and year and $40,000 a year despite working 12 to 16 hours a day every day of the year" I'd like to what these people do for 12 hours a day on their farm. I spend at MOST 2 hr each day on mine. I've been growing for 8 years and my farm performs very well. I don't live "on the ragged edge of bankruptcy" either. Granted, I know growers that do somewhat live this way. However, most of the time, these growers also don't manage their poultry farm on a daily basis. They have other interest they are also involved in and normally the poultry farm suffers because they pay someone minimum wage to manage the facility. These people really don't care how it's managed, it's not theirs, and they just want their check. I really have no problem with the way our settlements are done but then again, I consistently finish at the top of my settlement.

[trkykilr]

If your work output doesn't produce the desired return, quit. Do something else. If they all quit, the returns will have to go up or people will eat beef.

[ProvidenceSwamper]

Some folks make a good living with them. Majority of them have other irons in the fire. I will say from my experience with many of them it's not as lucrative as it used to be. These companies want too many upgrades now and they are requiring them earlier than they used to.

[Sportin' Woodies]

Poultry houses are the only way a small farmer can make it these days.

[Fish]

While I'll agree with you, those farmers had a choice to sign on that dotted line.

Yes, they had a choice. But the integrators changed the game. And its particularly bad where there's no competition.

I'll give you an example. I have a friend who is a good turkey farmer. He has three sets of barns. The integrator met with him the other week and pitched the idea of him converting all the barns to tunnels. We're talking about millionS of dollars. Amortized, with the integrator's "help" of course, his yearly income, after expenses, per set would around 28,000 K. That's a 72% decrease in income. The integrator is considering making it mandatory that all contract growers convert.

I'm not going to dig into this, but if you don't know what's going on in an industry, it would be a lot better if you took every opportunity to shut up.

[Southernduck]

I deal with a lot of poultry growers, the longer one is in the game, the less they seem to like it. What boggles me is the ones wanting to get in and take the risk given the ROI.

I know the cost side pretty well, I don't know the income side well.

[marsh chicken]

i was in Stuttgart this year and saw the guys from sanders farm landing and taking off in their citation several times. Initially I thought it was silent weapon because he is so rich. But then I was told otherwise by the guy at the airport. That's all I have to contribute to this.

[duckman88]

Yes, they had a choice. But the integrators changed the game. And its particularly bad where there's no competition.

I'll give you an example. I have a friend who is a good turkey farmer. He has three sets of barns. The integrator met with him the other week and pitched the idea of him converting all the barns to tunnels. We're talking about millionS of dollars. Amortized, with the integrator's "help" of course, his yearly income, after expenses, per set would around 28,000 K. That's a 72% decrease in income. The integrator is considering making it mandatory that all contract growers convert.

I'm not going to dig into this, but if you don't know what's going on in an industry, it would be a lot better if you took every opportunity to shut up.

Who knows, you could be a poultry farmer yourself (if you are ignore my comment) for all I know but based on your comment above, your 'expertise' is based on one person's (who is your friend which puts a bias in place) experience. Could you be right about the direction of the industry, sure. Could the poultry farmer who posted above be right, more than likely. But to tell one person to shut up because your apparently much deeper knowledge of an industry appears to be based on your one friend's experience is pure ignorance.

[Fish]

I own a turkey farm.

[duckman88]

Haha, well there you go.

[Fish]

I deal with a lot of poultry growers, the longer one is in the game, the less they seem to like it. What boggles me is the ones wanting to get in and take the risk given the ROI.

Okay, so here's the deal on ROI.

Back in 1986, when my father in law built set 1 and later, set 2, his ROI was approximately 82 - 85 thousand dollars per turn, three turns per year. All the farmers near him were doing the same.

Then, the integrator separated poult production from the grow out farms. Then they took the wood shavings market. Now they're talking about forcing everyone to convert. All of these things are bad for the growers.

What used to be 80 grand is now 30 grand, if your birds perform well. Sometimes they don't. Sometimes you have to put them on antibiotics for extended periods. Every bag of tetracycline costs the grower, not the integrator. And the integrator owns the birds. Some integrators will use any leverage they can bring to bear on the growers, including cutting off the birds. You don't have to believe what I'm saying, but its true.

We have a special relationship with the Circle S integrator. Since we own the land and the barns outright, we can tell them to go pleasure themselves, which we do at least twice a year whether we need to or not.

[SaltMuck]

I know most there is to know about them, as I finance them. Last year I financed the construction of 44 houses, plus too many to count for upgrades. That said, Southernduck is correct, the ROI is terrible. But, poultry farming is for some just like working at 5 Guys suits others. The net to the grower depends greatly on his financing, but on average I'd say a 4 house broiler farm can expect $40k if managed correctly. And yes I have several farms that are not profitable, generally due to management issues.

As far as being automated, they are not. You own the buildings and the integrator supplies the chicks, feed and meds. Feeding time, amounts, drinker pressure & height, air flow, etc. is all up to the grower. Surprisingly 4 hrs without water results in a large mortality, so plenty can go wrong and you have to be close by them 24/7.

But as stated previously, poultry farming is voluntary and profitable, if managed correctly.

[Sportin' Woodies]

10 minutes without power in the summer time and you can lose an entire flock. It can be stressful.

[turbo]

Regardless of all that Fish is bitching about, poultry farming is a voluntary endeavor.

So, there's that.

[Sportin' Woodies]

All farming is voluntary. Be grateful there are volunteers.

[Fish]

Regardless of all that Fish is bitching about, poultry farming is a voluntary endeavor.

So, there's that.

Your ability to make sense of the obvious sets you apart from your peers.

[turbo]

You're welcome.