Research Progress Report 215 February 1966
Integration in the Indiana Turkey Industry
James G. Vertrees and Robert J. Williams Department of Agricultural Economics
Summary
Since 1959 the number of Indiana turkey growers has declined substantially and individual grower size has increased. Indiana turkey production was found to be concentrated in Dubois, Daviess, and Elkhart counties. Several types of production contracts were identified. About 60 percent of the turkeys produced with contracts were classified under the "marketing agreement" type )f contract where the contractor played an important role in locating turkey buyers.
Nine Indiana firms had contracts (both oral and written) with 81 growers who produced about 30 percent of Indiana's 1964 production. Most contractors also raised turkeys with their own facilities. Large turkey buyers were important in purchasing turkeys from producers.
Introduction
Indiana's dynamic turkey industry has experienced several market structure changes within recent years. Development of vertical integration has been important. New relationships between suppliers and growers have developed, as well as between suppliers and other firms.
Knowledge about vertical integration, marketing methods and opportunities is limited. Information is needed for decisionmaking by individuals and firms in the industry so adjustments can be made to increase efficiency of operations.
The purpose of this study was to determine changes in structure of the Indiana turkey industry with particular reference to vertical integration and the marketing process.
Data for this study were obtained primarily from four questionnaires which were used to collect information on producers, integrators, and processors. The scope of the data used in this study is shown in Table 1.
These findings represent the Indiana turkey industry as it existed in 1964.
Size of Indiana Turkey Growers
Of an estimated total of 500 Indiana turkey growers in 1964, 199 growers surveyed produced 2,965,985 turkeys or 88 percent of Indiana's 1964 production of 3,371,000 turkeys . Average size of these surveyed growers was 14, 907 turkeys . Average size of 1,141 growers reported in the 1959 Census of Agriculture was 2,929 turkeys. Fifty-seven percent of the 199 growers surveyed produced between
PURDUE UNIVERSITY • Agricultural Experiment Station • Lafayette, Indiana