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An analysis of the effect of market regulation in the broiler industry in British Columbia and Washington Dixon, Wendy Holm

Abstract

The purpose of this study has been to analyze the effect of market regulation in the broiler industry in British Columbia and Washington State by comparing and contrasting the structure, conduct and performance of two institutions established to provide a degree of organization by producers in the marketing of broiler chickens. The two institutions studied have been the B.C. Broiler Marketing Board, in the province of British Columbia, Canada and the Washington Fryer Commission, in the state of Washington, United States of America. An analysis of the structure and conduct of the B.C. Broiler Marketing Board and the Washington Fryer Commission has been presented. An objectives model for organized marketing in the agricultural sector has been proposed, and from this model criteria have been chosen upon which to evaluate the market performance of the two structures with respect to organized marketing. It has been observed that the powers held by the B.C. Broiler Marketing Board are far more extensive than those held by the Washington Fryer Commission. It has been further observed that the performance of the B.C. Broiler Marketing Board has been primarily restrictive in nature and has had serious negative effects on the market environment for broiler chickens in British Columbia. The performance of the Washington Fryer Commission has been supportive in nature, and has had a positive effect on the market environment for broiler chickens in Washington State. In analysing the two approachs to organized marketing in the broiler industry, it has been concluded that the vesting of powerful tools of market regulation with primary producer groups (whose interests are narrowly defined) leads to inefficiencies in production and marketing which have serious effects on the industry as a whole.

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