How the Pandemic Could Impact the Price of Chicken Dinner
October 21, 2020 at 09:00 AM EDT
MILWAUKEE, Oct. 21, 2020 /PRNewswire-PRWeb/ -- New research suggests that if a broiler grower's average number of flocks in a year declines by one flock due to a market downturn, their median cash flow falls by about $62,000 and the probability of experiencing negative cash flow increases to around 95 percent.
The new article "Estimating COVID-19 Impacts on the Broiler Industry" published in the Applied Economic Perspectives & Policy, Joshua Maples from Mississippi State University, Jada Thompson from the University of Tennessee, Knoxville, David Anderson from Texas A&M University and John Anderson from the University of Arkansas examine the farm-level damages to the broiler industry due to the pandemic and some considerations for designing policy that targets the damages.
Maples says, "Understanding farm-level impacts is complex so we developed a model that allows for a better understanding of how market downturns such as the one caused by COVID-19 impact broiler growers. We find that impacts on broiler production variables such as flock out-times and stocking density have negative impacts on growers' cash flow."
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SOURCE Agricultural & Applied Economics Association