Marketing AND Poultry

1. Vertical Integration- the control of two adjacent stages in the vertical marketing channel from producers to consumers
1. Contract integration- a firm at one production-processing-distribution stage contracting with a firm at an adjacent stage for specific services and/or products
2. Ownership integration- the integrating firm OWNS most resources in adjacent production-processing-distribution stages
3. A company can be either partially or fully vertically integrated
4. Enhanced coordination enables firms to respond more quickly and correctly to changing customer demands
5. Motives
1. Profit opportunities (economic incentive)
1. In response to problems/inefficiencies in the stages; large transaction costs b.w the stages; new technologies to reduce costs; demand changes
2. Value-added products
1. Fresh-packaged product- traditional product sold w/ minimal processing
2. Value-added- processed to enhance its value
3. Differentiated product- value-added product w/ a brand name
3. Brand Marketing
1. Brand loyalty
6. Current State
1. MOST amount of integration in poultry industry
2. LARGE amount of integration in pork industry and INCREASING
3. LITTLE integration in beef industry
4. MORE incentive to integrate vertically in an industry w/ a shorter biological process and where genetic changes can be made more quickly
7. Poultry Industry
1. Stages
1. Hatching and growing
8. Pork Industry
1. Stages
1. Farrowing and finishing
1. Finishing- growing
9. Cattle industry
1. Stages
1. Cow-calf, stocker/growing, feeding

2. Poultry
1. Important commercial species- chicken, turkeys, ducks, geese
2. Poultry is second largest sector of animal agriculture
3. TO produce inexpensive sources of protein for human consumption
4. Structure and Geographic Location of the Industry
1. Broilers (meat chickens)- highly integrated
2. Layers (egg chickens)
3. Turkey- highly integrated, short biological period
5. Genetics and Breeding
1. Quantitative traits- egg production potential, egg size, growth rate, confirmation
2. Heterosis- egg production, egg weight, etc.
6. Breeds
1. Chickens
1. 350 + breeds
2. ID by class, breed, variety and strain
1. Class- group of breeds originating in the same geographic area
2. Breed- specific type of physical features
3. Varieties- subdivisions of breeds, based on specific qualities
4. Strains- families or breeding populations that are most nearly alike
3. Commercial poultry industry is based primarily on strains
4. Single Comb White Leghorn is the most common
1. Egg-producers
5. New Hampshire and White Plymouth Rock are meat-chickens
2. Turkey
1. Large White Turkeys dominate the industry
2. Descendants of the wild turkeys of North and Central America
7. Nutrition
1. Complicated due to rapid digestion, high metabolic rates, fast respiration, high body temperatures
2. Feed is largest cost in production
3. Optimize growth of meat-producing animals to get them on market faster
8. Health Management
1. Biosecurity measures
2. Poultry production is a concentrated field