A Method of Comparing Contract Proposals for Broiler-Chicken Production

Ewell Paul Roy

American Journal of Agricultural Economics, 1965, vol. 47, issue 4, 973-978

Abstract: A budgeting method is used to evaluate ten broiler contracts. These contracts are evaluated from the standpoint of the broiler-grower. Costs of production for the grower are assumed to be the same under all of the contracts. The most profitable contract for the grower is one in which the payment per pound marketed is five times the point spread (live weight divided by feed-conversion ratio). Of the ten contracts evaluated, five showed a profit and five a loss for the grower.

Date: 1965
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