Economic and Marketing Information                                                                                                                                                                                      FOR INDIANA  FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana
February 27,   1959
The Indiana Poultry Processing Industry
by MILTON M. SNODGRASS, RICHARD D.  DARLEY,  and RALPH E.  BIGGS
Department of Agricultural Economics
INDIANA POULTRY PROCESSING plants processed about 134 million eviscerated (dressed)
pounds of poultry meat (broilers, fowl, and turkey)
in 1957 (Table 1). There were 154 plants in business,
but the largest 21 processed 87 percent of the total
(Figure 1). Broilers accounted for 57%; turkeys,
21%, and fowl, 22% (Figure 2). Most Indiana plants
process all three classes of poultry; however, the
larger plants tend to specialize more.
The majority of the processing plants are in or
near large consuming centers, although several of
the large plants are situated in the heart of production areas.
Eight of the processors in the large group (Table
1) started processing operations between 1947 and
1955. Only 13 new plants came into operation in the
last three years, and eight of these were very small.
Eighty-five percent of Indiana processors are organized as individual proprietorships. However, of
the 21 plants slaughtering over a million pounds per
year, 15 are corporations, four are proprietorships,
and two are partnerships.
Most processors perform some function other than
slaughtering poultry. Seventy percent of the total
retail poultry meat, and a similar percentage handle
eggs. Of the 21 largest, four retail poultry meat, 11
handle eggs, four grow some broilers of their own,
and four contract directly with producers.
In plant equipment (both type and amount) large
Indiana processors compare favorably with processors in the South. Indiana processors are up-
to-date technologically and can compete in terms
Broilers
Turkeys
Fowl
All Classes
Percent of total output by:
I 1   21   largest  firms
(I I I Hit I
vXv:v.   133 smaller firms
Figure 1. Comparing 133 Small Processors to 21 Large
Processors.
of in-plant costs. However, in 1957, the large Indiana
processors operated at about 73% capacity throughout the year. Since the southern processors operate
at about 90% capacity, the Indiana processor is at
a disadvantage because his fixed cost per unit is
higher. Large Indiana processors have an average
of $203,398 invested in their operation, with $90,065
invested in equipment.
The 21 large plants hire an average of 48.7 plant
employees and 3.3 administrative persons. Average
Table 1.   1957 Slaughter Data on 154 Indiana Poultry  Processors,  Comparing   by  Size  Groups  Output  of
Very Small Plants to the Small, Medium and Large.
VERY SMALL
SMALL
MEDIUM
LARGE
TOTAL
(thousands of eviscerated pounds)
0-99
81
100-299
32
300-999
20
Over   1000
21
Size of plant
Number of plants
154
(eviscerated pounds)
Average slaughter per plant
37,728
150,845
456,426
5,566,391
Market Classes Slaughtered:
Broilers
Turkeys
Fowl
1,946,886
378,091
731,044
3,662,197
391,222
773,632
(eviscerated pounds)
7,092,300
838,790
1,197,420
64,035,478
26,828,982
26,032,758
76,736,861
28.434,085
28,734,854
Total-All   Classes
3,056,021
4,827,051
9,128,510
116,894,218
133,905,800
Market Classes Slaughtered
(percent of total slaughter)
9
3
4
7
83
100.0
Broilers
3
5
94
100.0
Turkeys
1
2
90
100.0
Fowl
3
3
87
100 0
All Classes
2
4