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What percentage of turkey production occurs under a contract system?

  1. 30%

  2. 50%

  3. 75%

  4. 90%

The correct answer is: 75%

The correct answer is that approximately 75% of turkey production occurs under a contract system. This means that a significant majority of turkey farmers operate within a contractual agreement with larger processing companies. This system allows producers to receive support, such as access to resources, feed, and market tools, which can lead to more efficient production and better economic stability. In a contract system, farmers often raise turkeys provided by the processing company, which may also dictate specific practices related to feeding, health care, and production techniques. This relationship benefits both parties: the producers have a guaranteed market for their birds, while processors ensure a consistent supply of turkeys that meet their quality standards. The high percentage illustrates the industry's reliance on this method, which helps maintain the balance of power in the poultry market. Knowing that this is a common practice informs both producers and consumers about the structural dynamics of turkey production in the agricultural landscape.