Integrated Broiler Production System - As a Means of Stabilizing Whole Industry with Particular Reference to U.S. Experience -

브로일러계열화 생산조직에 관한 고찰 - 미국의 예를 중심으로 -

The basic problem of the broiler industry is that of fluctuating prices, mainly thanks to unstable supply of and inelastic demand for products as usually indicated as a peculiarity of agricultural commodities. This particularly brings the producer to a great economic risk, because he has to sell products under the condition of pure competition, whereas others from whom he has to buy deal under the condition of oligopoly or even monopoly. Therefore, producers economic position is generally placed in the worst comparing others dealing with, which results in unbalanced economic status of elements involved in broiler operation and further obstruction of industry development as a whole. A certain type of business coordination to overcome such a problem should be measured in order to improve the efficiency of entire operation and thus assure the balanced industry development. The concept of the economic integration developed in modern business system had been adapted to U.S. poultry industry which became common later around the world as a means of stabilizing producers price and whole industry as well. There are two main typos of integration; horizontal and vertical The former refers to the general grouping of similar business units, eg. a hatchery tying with other hatchery, while the latter refers to the knitting together of two or more stages of economic activities, eg. tying together among units of hatching, fled milling, production, processing and marketing. By having the industry integrated, risk and uncertainty involved in various stages of operation could be diversified. The typo of integrating contract between producers and integrators include the share of profits, flat fee payment, feed conversion payment and salary basis. In the U.S., extensive changes in production, processing, and marketing during the last few decades have changed the thicken broiler industry from one of small, widely scattered farms to one that is largo, concentrated and efficient. More than 99 percent of all broilers produced are grown under contract and by integrated firms which vary in size of operation and complexity. About 84 percent of all production is concentrated in 10 States. Some of the other factors ;hat contributed to these choses arc costs, energy use, prices, processing, marketing and demand. No integrated broiler production system has yet been applied in Korea's poultry industry, thus all stages all broiler operation run independently seeking for its own profit. Consequently, producers price fluctuate very widely around the year even more than 50 percent in a few months. This also leads to disadvantages of material supplies, processors and distributors and enforce the industry unstable. The current economic environment in Korea seems that the time for broiler integration comes and as an ideal integrator, feed millers, food processors and producers group may be considered.