How the Pandemic Could Impact the Price of Chicken Dinner
New AAEA member research released in AEPPs COVID-19 Special Issue
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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ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes two journals, the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit www.aaea.org.
Contact: Allison Ware
Senior Communications Manager