WEBVTT - Beak Capitalism, Part 2: The Chickenization of Everything

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>But besides being a good egg layer, the chicken of

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<v Speaker 2>tomorrow will be an improved meat producer. Here's an example

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<v Speaker 2>of the progress that's been made already. Notice how breeding

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<v Speaker 2>has increased the amount of meat on the breast. Look

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<v Speaker 2>at that drumstick. This bird was fattened in the same

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<v Speaker 2>length of time and on the same amount of feed

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<v Speaker 2>as the other one. Thank your own guess as to

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<v Speaker 2>which is the more profitable to raise.

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<v Speaker 3>For much of America's history, chickens look different to the

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<v Speaker 3>way they do today. They were thin, elegant, even slim

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<v Speaker 3>and upright. The average bird weighed about two and a

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<v Speaker 3>half pounds in the nineteen twenties, and chickens were raised

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<v Speaker 3>differently too, on small farms and homesteads. The birds and

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<v Speaker 3>their eggs provided a valuable source of extra protein and

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<v Speaker 3>the occasional Sunday roast for millions of Americans.

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<v Speaker 4>But today chickens are front loaded feathered freaks. After years

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<v Speaker 4>of commercial breeding, the weight of your run of the

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<v Speaker 4>mill roaster has more than doubled to a chunky five

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<v Speaker 4>or six pounds, way more than chickens of the past.

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<v Speaker 1>Chickens as our great grandparents would have understood them looked

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<v Speaker 1>very different from chickens today. They were scrawny, they were rangier,

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<v Speaker 1>they could move around a barnyard, and they could flap

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<v Speaker 1>up into trees and avoid predators. And that's almost nothing

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<v Speaker 1>like the chickens that we eat today. So if you

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<v Speaker 1>went back to the time of I guess our great grandparents,

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<v Speaker 1>let's say, at the beginning of the twentieth century, people

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<v Speaker 1>didn't eat chicken that and that seems very bizarre to

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<v Speaker 1>us now in the era when there are a million

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<v Speaker 1>forms of chicken nuggets in the cold case at the

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<v Speaker 1>supermarket and there's a chicken sandwich on every corner. But

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<v Speaker 1>chicken used to be kind of special.

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<v Speaker 3>Welcome to the second installment of Beat Capitalism, our add

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<v Speaker 3>thoughts special series in which we are examining the US

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<v Speaker 3>economy through the lens of chicken. If you haven't listened

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<v Speaker 3>to our first episode where we talked about chicken prices

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<v Speaker 3>and the consumer experience of eating chickens and eggs, you

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<v Speaker 3>should definitely go back and do that.

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<v Speaker 4>In this episode, we're going to focus on the birds

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<v Speaker 4>themselves and the people that grow them, because chicken actually

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<v Speaker 4>has a lot to say about the structure of the

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<v Speaker 4>labor market too, and the relationship between big companies and

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<v Speaker 4>their workers. And a lot has changed from the backyard

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<v Speaker 4>birds of yesteryear.

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<v Speaker 3>To understand what's happened to chickens and the people who

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<v Speaker 3>grow them, it helps to consider where they started from.

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<v Speaker 3>Maren McKenna is a journalist and author who specializes in

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<v Speaker 3>public health, and she wrote a book called appropriately Enough,

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<v Speaker 3>Big Chicken.

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<v Speaker 4>As we said, chickens used to be a lot. Smaller

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<v Speaker 4>families might keep a few egg layers in their backyards,

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<v Speaker 4>and once the birds reached the end of their laying life,

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<v Speaker 4>they might be put in the proverbial pot. One key

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<v Speaker 4>thing is that chicken meat, for a long time was

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<v Speaker 4>a tree, not a stable.

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<v Speaker 5>Now.

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<v Speaker 3>As a rule, older chickens that have been running around

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<v Speaker 3>a backyard don't usually taste as good. They're leaner, they're chewier,

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<v Speaker 3>and there just aren't that many of them compared to today's

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<v Speaker 3>industrial scale farming. But things started to change in the

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<v Speaker 3>nineteen twenties and nineteen thirties. To satisfy increased demand for

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<v Speaker 3>chicken meat, farmers started scaling up and raising their birds

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<v Speaker 3>in big chicken houses. We'll talk more about those in

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<v Speaker 3>just a little bit.

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<v Speaker 4>In the nineteen forties, after the Second World War, something

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<v Speaker 4>big happen on the way to Big Chicken.

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<v Speaker 1>To understand where the industrialization of chicken comes from, and

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<v Speaker 1>after that the industrialization of almost all the other proteins

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<v Speaker 1>that we eat, you really have to go back to

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<v Speaker 1>the middle to the end of World War II, and

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<v Speaker 1>a couple of things are happening at the same time.

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<v Speaker 1>The first is that there's a war on and there's

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<v Speaker 1>a lot of soldiers and sailors deployed around the globe

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<v Speaker 1>who need to be fed, so there's a great deal

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<v Speaker 1>of pressure on meat producers to increase their production. Pressure

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<v Speaker 1>that goes away when the war is over, and when

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<v Speaker 1>that guaranteed market from the military forces suddenly vanishes, leaving

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<v Speaker 1>them pretty over extended. The second is that immediately after

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<v Speaker 1>World War two, kind of extraordinarily, there are a number

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<v Speaker 1>of extreme weather events in growing areas around the globe.

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<v Speaker 1>There are typhoons, there are storms, and this is added

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<v Speaker 1>to the destruction of growing areas that occurred during the

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<v Speaker 1>war and the destruction of naval fleets and of fishing vessels.

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<v Speaker 1>So there's both an over extension of meat production and

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<v Speaker 1>also a sense of frigility of the food system.

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<v Speaker 4>It was against this backdrop the biologist Thomas Jukes entered

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<v Speaker 4>the picture. With more and more chickens now being kept

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<v Speaker 4>in big houses, the birds were no longer able to

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<v Speaker 4>forage for bugs and grubs and graints on their own.

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<v Speaker 4>They needed help to survive indoors, and that's where Jukes

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<v Speaker 4>comes in.

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<v Speaker 1>Jukes was attached to a team that had produced the

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<v Speaker 1>first antibiotic of the tetracyclines that we still use today.

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<v Speaker 1>It was called oreomycin. He also happened to have been

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<v Speaker 1>given an assignment to address the dietary needs of chickens

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<v Speaker 1>because part of the issue of the meat industry feeling

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<v Speaker 1>over extended after the end of World War II was

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<v Speaker 1>that they felt they needed to cut costs. This is

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<v Speaker 1>actually the point at which we start entering in to

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<v Speaker 1>the part of American agricultural history where livestock starts getting

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<v Speaker 1>fed a lot of grain, but there was concern that

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<v Speaker 1>grain didn't have a full nutritional profile, and so they

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<v Speaker 1>were looking for inexpensive supplements, and in a very famous experiment,

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<v Speaker 1>Jukes bought a whole bunch of baby chicks, divided them

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<v Speaker 1>into groups gave each group some kind of supplement that

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<v Speaker 1>was available on the market at the time, cod liver oil,

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<v Speaker 1>synthesized vitamins, brewers yeast. To one group, he gave the

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<v Speaker 1>ground up dried remains of the growing medium in which

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<v Speaker 1>his company's drug had been made, oreomycin, and when he

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<v Speaker 1>assessed the results of the experiment on Christmas Day in

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<v Speaker 1>nineteen forty eight, he found that the chicks in his

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<v Speaker 1>experiment who'd been given the oreomcein leftovers, had gained more

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<v Speaker 1>weight than any other set of animals in the experiment,

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<v Speaker 1>and from that recognition, an entire industry of giving an

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<v Speaker 1>biotics to animals began. Jukes called that effect growth promotion,

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<v Speaker 1>and they filed for a patent for the.

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<v Speaker 3>So The introduction of growth promoters helped the birds survive

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<v Speaker 3>the great indoors and get bigger. But that wasn't the

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<v Speaker 3>last of the chicken revolution.

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<v Speaker 1>One was that chickens themselves changed physically, thanks largely to

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<v Speaker 1>the US Department of Agriculture, which in the late nineteen

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<v Speaker 1>forties and early nineteen fifties sponsored a contest among chicken

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<v Speaker 1>breeders called the Chicken of Tomorrow.

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<v Speaker 2>Help in developing the Chicken of tomorrow. You can't take

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<v Speaker 2>it regretted that every hand is earning her keeper. Even

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<v Speaker 2>though laying an egg ought to be easy for any.

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<v Speaker 1>Chicken, that's a few thing big twe.

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<v Speaker 2>Well.

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<v Speaker 6>Anyhow, the idea of.

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<v Speaker 1>The Chicken of Tomorrow contest was to make chickens meteor

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<v Speaker 1>to produce a bird that would have more breast, that

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<v Speaker 1>would have big enough to feed a family, which was

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<v Speaker 1>kind of hard at that point for a four or

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<v Speaker 1>five person family to eat one chicken and be satisfied,

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<v Speaker 1>and also to be very predictable in a number of ways,

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<v Speaker 1>to be a single breed. And after a couple of

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<v Speaker 1>years of competition, the Chicken of Tomorrow Contest produced the

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<v Speaker 1>prototype for the most of the chickens that are raised today.

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<v Speaker 1>Blocky muscles, white feathered, docile, not interested in running around

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<v Speaker 1>a barnyard and flapping up into a tree, content to

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<v Speaker 1>sit in one place.

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<v Speaker 4>So antibiotics and breeding helped turn the chicken of tomorrow

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<v Speaker 4>into the chicken of today.

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<v Speaker 3>Well that's not quite all. Actually, a lot of things

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<v Speaker 3>were happening on the chicken innovation front around that time.

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<v Speaker 1>The second thing that drove the difference between the Chicken

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<v Speaker 1>of yesterday and the chicken of tomorrow is that we

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<v Speaker 1>changed our orientation to how we eat chicken from buying

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<v Speaker 1>birds that were whole and had to be roasted or

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<v Speaker 1>cut up into pieces and had to be pan fried

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<v Speaker 1>or broiled into a source of protein that was disassembled

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<v Speaker 1>at the manufacturing level into things like nuggets, so that

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<v Speaker 1>people could consume chicken without having to deal with the

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<v Speaker 1>physical reality of a chicken.

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<v Speaker 3>It's hard to imagine a world without chicken nuggets now,

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<v Speaker 3>but as Marin lays out, it wasn't until the nineteen

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<v Speaker 3>sixties that these became a thing, and it was a

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<v Speaker 3>very deliberate decision. After all, if you want to sell

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<v Speaker 3>more chicken, you have to get people to eat more chicken,

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<v Speaker 3>and one way of doing that is giving them more

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<v Speaker 3>options to consume it. And then boom, the chicken nugget

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<v Speaker 3>was born, and these little nuggets of chicken proved to

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<v Speaker 3>be pure gold for some businesses like McDonald's McDonald's, Yes

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<v Speaker 3>and Joe. You might be surprised to find out that

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<v Speaker 3>McDonald's didn't actually invent the chick and nugget. Here's Marin again.

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<v Speaker 1>So we all think of the chicken nugget as a

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<v Speaker 1>creation of McDonald's, and certainly McDonald's would claim that the

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<v Speaker 1>chicken nugget is their thing. Introduced in the late seventies,

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<v Speaker 1>by nineteen eighty they were blowing the doors off in

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<v Speaker 1>the McDonald's restaurants where they were sort of secretly introduced.

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<v Speaker 1>But it's pretty widely understood in the poultry industry that

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<v Speaker 1>McDonald's shouldn't get all the credit because the prototype, the

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<v Speaker 1>predecessor of the McDonald's chicken nugget, was actually invented by

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<v Speaker 1>a kind of tinkereer scientist in a basement laboratory at

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<v Speaker 1>Cornell University, a guy named Robert Baker, who was not

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<v Speaker 1>primarily interested in chicken, but rather was interested in essentially

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<v Speaker 1>how to avoid food waste. And he was very troubled

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<v Speaker 1>by how much of the carcass of a chicken goes

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<v Speaker 1>to waste, and he wanted to find ways to use

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<v Speaker 1>as much of the carcass as possible, as much of

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<v Speaker 1>the meat on the carcass as possible. And he came

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<v Speaker 1>up in this basement laboratory with a bunch of graduate

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<v Speaker 1>students with things that we now take for granted in

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<v Speaker 1>supermarkets chicken, bacon, chicken cold cuts, chicken sausages. But his

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<v Speaker 1>signature contribution to the future of chicken was a thing

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<v Speaker 1>that he called the chicken stick, modeled some degree on

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<v Speaker 1>fish sticks, which had been introduced about ten years earlier.

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<v Speaker 1>The chicken stick was chopped, formed, pressed chicken meat sucked

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<v Speaker 1>off the bones, covered with a breaded coating, frozen and

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<v Speaker 1>frozen in such a way that when you took it

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<v Speaker 1>out of the freezer and fried it or baked it,

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<v Speaker 1>the coating wouldn't disassemble from the rest of the meat.

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<v Speaker 1>That was a kind of secret process that Baker invented,

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<v Speaker 1>but it didn't stay a secret. It was released in

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<v Speaker 1>an agricultural extension bulletin that Cornell published and sent all

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<v Speaker 1>over the country. They didn't in any way attempt to

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<v Speaker 1>keep any ip in this, and as a result, the

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<v Speaker 1>idea of something that looked like at chicken nugget was

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<v Speaker 1>out there in the world, and seventeen years later out

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<v Speaker 1>came the McDonald's snugget.

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<v Speaker 3>Suddenly a lot more of a chicken could be used,

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<v Speaker 3>and thanks to antibiotics and breeding, there was more chicken

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<v Speaker 3>around to sell.

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<v Speaker 4>One way to think about it is that raising chickens

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<v Speaker 4>went from being a really small scale agriculture process to

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<v Speaker 4>more of an industrial thing. There's a reason it's called

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<v Speaker 4>factory farming, after all. The idea is to produce as

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<v Speaker 4>much meat as you can at the lowest possible cost,

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<v Speaker 4>and then use it as efficiently as possible. And to

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<v Speaker 4>do that you need standardization, new technology in the form

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<v Speaker 4>of growth promoters and scale.

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<v Speaker 1>I really think we can say that it's because of

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<v Speaker 1>antibiotic use that we have the modern industrial scale meat

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<v Speaker 1>production that we have today. Without that early use of

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<v Speaker 1>antibiotics as growth promoters, no one would have understood that

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<v Speaker 1>you could actually produce animals almost like widgets in a

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<v Speaker 1>kind of Henry Ford model. And so once people moved

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<v Speaker 1>to doing that, then it made sense for farms to

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<v Speaker 1>get larger and for profit to increase. And for farms

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<v Speaker 1>to get larger, you had to protect animals against being

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<v Speaker 1>held in more crowded conditions than they traditionally would have

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<v Speaker 1>been in smaller open farms.

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<v Speaker 3>The upside of all of this is that we get

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<v Speaker 3>plentiful white meat, all the stuff that goes into delicious

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<v Speaker 3>sandwiches and convenient chicken nuggets. The downside is a lot

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<v Speaker 3>of that comes at the expense of the animals themselves,

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<v Speaker 3>and as we're about to see, also the farmers who

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<v Speaker 3>grow them. There's another seminal moment in the transformation of

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<v Speaker 3>America's chicken industry, one that has more to do with

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<v Speaker 3>where they're grown and by whom.

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<v Speaker 4>In nineteen twenty three, a Delaware housewife by the name

0:14:02.840 --> 0:14:06.920
<v Speaker 4>of Cecil long Steel by the way, great name, got

0:14:06.920 --> 0:14:12.000
<v Speaker 4>a surprise in the mail. She had ordered fifty baby chicks,

0:14:12.160 --> 0:14:14.520
<v Speaker 4>but the mailman came to her door with five hundred

0:14:14.559 --> 0:14:15.280
<v Speaker 4>chicks instead.

0:14:15.840 --> 0:14:18.800
<v Speaker 3>Instead of sending the hundreds of extra chicks back in

0:14:18.840 --> 0:14:22.120
<v Speaker 3>the mail, Cecil decided to make do. She kept them

0:14:22.120 --> 0:14:24.600
<v Speaker 3>in a cardboard box and set about building a shed

0:14:24.640 --> 0:14:27.760
<v Speaker 3>to house them. Over the next five months or so,

0:14:28.000 --> 0:14:30.880
<v Speaker 3>she raised the chicks to adulthood, fattening them up and

0:14:30.920 --> 0:14:34.000
<v Speaker 3>eventually selling them to local hotels and restaurants as a

0:14:34.040 --> 0:14:38.160
<v Speaker 3>delicious meal. Then she decided to do it all over again.

0:14:38.640 --> 0:14:41.840
<v Speaker 3>Soon she was ordering one thousand chicks, then ten thousand,

0:14:42.080 --> 0:14:43.320
<v Speaker 3>and then she just kept going.

0:14:43.680 --> 0:14:46.480
<v Speaker 4>So what Cecil pioneered is the first broiler house, a

0:14:46.480 --> 0:14:49.560
<v Speaker 4>big step in the history of poultry farming. Today, chickens

0:14:49.560 --> 0:14:51.800
<v Speaker 4>are raised in huge barns that cost large amounts of

0:14:51.840 --> 0:14:53.920
<v Speaker 4>money to build, and in order to keep these big

0:14:53.960 --> 0:14:56.760
<v Speaker 4>barns filled with chickens, farmers have to participate in something

0:14:56.840 --> 0:14:58.640
<v Speaker 4>called the tournament system.

0:14:58.920 --> 0:15:01.960
<v Speaker 3>In fact, everything about modern chicken is big. In the

0:15:02.000 --> 0:15:06.040
<v Speaker 3>tournament system, farmers get baby chicks from large chicken breeders

0:15:06.240 --> 0:15:11.400
<v Speaker 3>they're called integrators companies like Tyson, Purdue or Pilgrim's Pride,

0:15:11.680 --> 0:15:14.480
<v Speaker 3>and then they raise them using feed and growth promoters

0:15:14.520 --> 0:15:17.960
<v Speaker 3>sent to them by those same companies. Eventually, the mature

0:15:17.960 --> 0:15:20.880
<v Speaker 3>birds are handed back to the chicken company that sold

0:15:20.920 --> 0:15:23.960
<v Speaker 3>them as babies and they fulfill their chicken destiny of

0:15:24.000 --> 0:15:26.640
<v Speaker 3>becoming sandwiches, nuggets, or other snacks.

0:15:27.320 --> 0:15:30.280
<v Speaker 6>Basically, what we do is we supply the buildings and

0:15:30.320 --> 0:15:33.520
<v Speaker 6>the labor and all the stuff needed to actually raise

0:15:33.600 --> 0:15:37.040
<v Speaker 6>birds for these big what they call integrators or chicken

0:15:37.080 --> 0:15:40.800
<v Speaker 6>companies like a Tyson or Purdue. Tyson or Purdue actually

0:15:40.880 --> 0:15:43.760
<v Speaker 6>owns the chicks, and they actually own the feed and

0:15:44.200 --> 0:15:45.680
<v Speaker 6>vaccinations and that sort of thing.

0:15:46.120 --> 0:15:49.920
<v Speaker 3>Meet Craig Watts. He's a former contract poultry producer who

0:15:50.000 --> 0:15:53.680
<v Speaker 3>raised chickens in North Carolina. As part of the tournament system.

0:15:53.760 --> 0:15:57.120
<v Speaker 6>We just basically get them on what lack of better terms,

0:15:57.160 --> 0:15:59.960
<v Speaker 6>consignment there, there's just a few hours old. When we

0:16:00.120 --> 0:16:04.000
<v Speaker 6>get them and we raise them up to market age.

0:16:04.520 --> 0:16:06.840
<v Speaker 6>They give us some guidelines on doing that, and then

0:16:06.880 --> 0:16:09.240
<v Speaker 6>they come pick them up, and then we get ready

0:16:09.240 --> 0:16:10.320
<v Speaker 6>and start all over again.

0:16:10.680 --> 0:16:13.520
<v Speaker 4>It all sounds pretty simple and efficient, and the integrators

0:16:13.560 --> 0:16:17.000
<v Speaker 4>themselves argue that they're basically taking on the messier, more difficult,

0:16:17.080 --> 0:16:20.120
<v Speaker 4>and more capital intensive parts of the chicken business, like

0:16:20.200 --> 0:16:23.360
<v Speaker 4>hatching chicks, transporting them back and forth to farmers, and

0:16:23.400 --> 0:16:25.600
<v Speaker 4>then processing them into chicken nuggets and so on.

0:16:25.960 --> 0:16:29.720
<v Speaker 3>So that's the tournament system, but Craig Craig calls it

0:16:29.800 --> 0:16:30.520
<v Speaker 3>something different.

0:16:30.880 --> 0:16:33.160
<v Speaker 6>Basically, what it boils down to is who can get

0:16:33.200 --> 0:16:38.760
<v Speaker 6>the chicken to the plant the quickest, Who can get

0:16:38.800 --> 0:16:41.880
<v Speaker 6>that chicken the fattest on the least amount of feed

0:16:42.360 --> 0:16:45.400
<v Speaker 6>least amount of feed meaning least amount of cost. So

0:16:46.400 --> 0:16:49.360
<v Speaker 6>and that sounds perfect. I mean, you figure things out,

0:16:49.440 --> 0:16:52.080
<v Speaker 6>you grasp concepts, you tweet things, do what you have

0:16:52.160 --> 0:16:54.560
<v Speaker 6>to do, and if you work smarter and you work

0:16:54.600 --> 0:16:57.040
<v Speaker 6>harder than the next guy, you're gonna get compensated a

0:16:57.080 --> 0:16:58.960
<v Speaker 6>little more perfect.

0:16:59.160 --> 0:16:59.400
<v Speaker 2>Right.

0:17:00.080 --> 0:17:03.040
<v Speaker 6>The problem is, there's the flaw in this whole tournament

0:17:03.120 --> 0:17:06.000
<v Speaker 6>system scenario. I call it thunder doom. It's ten men

0:17:06.119 --> 0:17:09.080
<v Speaker 6>enter and five men leave. Because every week, if you

0:17:09.160 --> 0:17:12.399
<v Speaker 6>have ten growers go out, you're gonna have some that

0:17:12.480 --> 0:17:15.080
<v Speaker 6>make at or above the base pay, which is my

0:17:15.119 --> 0:17:16.840
<v Speaker 6>base pay, well I think was around five cents a

0:17:16.840 --> 0:17:19.000
<v Speaker 6>pound at that time. Then you're going to have five

0:17:19.119 --> 0:17:21.600
<v Speaker 6>or so out of the ten that are at base

0:17:21.760 --> 0:17:25.119
<v Speaker 6>or below. Right, so they take the bonuses to the

0:17:25.400 --> 0:17:28.400
<v Speaker 6>five growers that are above average, is taking the pay

0:17:28.440 --> 0:17:31.479
<v Speaker 6>of the growers that are below average. So for the company,

0:17:31.480 --> 0:17:33.919
<v Speaker 6>it's a zero sum game. They're only going to have

0:17:33.920 --> 0:17:36.600
<v Speaker 6>a nickel invested in a pound. A pie, so to speak,

0:17:36.760 --> 0:17:40.000
<v Speaker 6>is finite. The size of the pie is finite. The

0:17:40.000 --> 0:17:42.680
<v Speaker 6>farmer is fighting for the slice.

0:17:43.000 --> 0:17:46.080
<v Speaker 4>So in the tournament system, you're basically graded on a curve.

0:17:46.280 --> 0:17:48.520
<v Speaker 4>If you're a chicken farmer who does well relative to

0:17:48.560 --> 0:17:50.800
<v Speaker 4>other growers in the area, you'll get more money from

0:17:50.840 --> 0:17:52.800
<v Speaker 4>the pot, and the ones who do badly you get

0:17:52.840 --> 0:17:54.879
<v Speaker 4>less money from the same pot. So you want to

0:17:54.920 --> 0:17:56.800
<v Speaker 4>be ranked higher relative to other growers.

0:17:57.359 --> 0:18:00.720
<v Speaker 3>When Craig decided to become a farmer, heating against his

0:18:00.800 --> 0:18:03.960
<v Speaker 3>fellow chicken growers for pay wasn't quite what he had

0:18:04.000 --> 0:18:07.920
<v Speaker 3>in mind. In fact, let's go back to how Craig

0:18:08.040 --> 0:18:10.760
<v Speaker 3>got into the chicken business in the first place, back

0:18:10.800 --> 0:18:14.280
<v Speaker 3>when he saw a big opportunity when Purdue started building

0:18:14.320 --> 0:18:17.440
<v Speaker 3>a processing plant just seven miles south of his home.

0:18:17.800 --> 0:18:19.919
<v Speaker 6>They were looking for farmers to contract. We had to

0:18:19.920 --> 0:18:23.720
<v Speaker 6>build buildings to raise their birds. I saw advertisement in

0:18:23.760 --> 0:18:26.399
<v Speaker 6>the paper. I called the representative. We had a meeting.

0:18:27.119 --> 0:18:29.760
<v Speaker 6>He gave me an income and expense kind of pro

0:18:29.840 --> 0:18:32.920
<v Speaker 6>form a sheet. It wasn't get rich quick. I took

0:18:32.920 --> 0:18:35.720
<v Speaker 6>it to my accountant. He cash floated there again. It

0:18:35.800 --> 0:18:37.960
<v Speaker 6>was steady, but it wasn't get rich. But it was enough.

0:18:38.480 --> 0:18:41.840
<v Speaker 6>And the guy at farm Credit was excited about the

0:18:41.880 --> 0:18:44.440
<v Speaker 6>possibility of poetry moving the entire area. He told me

0:18:44.480 --> 0:18:46.560
<v Speaker 6>it was the best thing that might be the best

0:18:46.560 --> 0:18:48.359
<v Speaker 6>thing that ever happened to farm in Robinson County.

0:18:48.359 --> 0:18:50.840
<v Speaker 3>So there was Things went okay at first. Craig spent

0:18:50.880 --> 0:18:54.560
<v Speaker 3>his days monitoring his birds, making sure they weren't overheating

0:18:54.760 --> 0:18:57.679
<v Speaker 3>or getting sick, or eating too much or too little,

0:18:58.080 --> 0:19:01.800
<v Speaker 3>basically following the instructions and the chicken growing rules sent

0:19:01.840 --> 0:19:02.440
<v Speaker 3>by Perduit.

0:19:02.560 --> 0:19:05.040
<v Speaker 6>Well, the first thing I would do, I would wake

0:19:05.160 --> 0:19:07.399
<v Speaker 6>up and I would go and I would open all

0:19:07.400 --> 0:19:10.520
<v Speaker 6>the houses up and I would just basically stick my

0:19:10.560 --> 0:19:12.280
<v Speaker 6>head in the look and then I would and then

0:19:12.359 --> 0:19:15.320
<v Speaker 6>we had a control room that the monitor things from,

0:19:15.800 --> 0:19:18.479
<v Speaker 6>and I would make sure that the controller was set properly.

0:19:18.520 --> 0:19:21.320
<v Speaker 6>They call it a computer, but it's basically a glorifly

0:19:21.480 --> 0:19:25.800
<v Speaker 6>thermostat basically where you can control all the temperature settings,

0:19:25.920 --> 0:19:28.879
<v Speaker 6>fan settings, that kind of stuff from a central location.

0:19:29.000 --> 0:19:30.320
<v Speaker 6>So I would I would look at all that and

0:19:30.359 --> 0:19:33.000
<v Speaker 6>make sure everything was right, you know, take a sniff test,

0:19:33.040 --> 0:19:35.240
<v Speaker 6>you know, is ammonia up, is it good? You know?

0:19:35.520 --> 0:19:38.040
<v Speaker 6>Is the house too humid? You know? And what did

0:19:38.040 --> 0:19:40.240
<v Speaker 6>the birds look like? Are they spread out comfortable? Are

0:19:40.240 --> 0:19:42.560
<v Speaker 6>they active or are they just huddled up? Or are

0:19:42.560 --> 0:19:44.520
<v Speaker 6>they panting? I mean, it was just it was just

0:19:44.560 --> 0:19:47.760
<v Speaker 6>a lot of observations. Initially I would have to run

0:19:47.760 --> 0:19:49.400
<v Speaker 6>to kids to school, but then when i'd come back,

0:19:49.680 --> 0:19:51.880
<v Speaker 6>the next thing I would do. I'd actually physically walk

0:19:51.920 --> 0:19:54.760
<v Speaker 6>through the houses and I would look for birds that

0:19:54.800 --> 0:19:58.520
<v Speaker 6>had died or maybe were deformed, or just maybe weren't

0:19:58.560 --> 0:20:01.040
<v Speaker 6>performing as they should. Either I pick up the dead

0:20:01.560 --> 0:20:03.320
<v Speaker 6>or we would have to call out and just just

0:20:03.359 --> 0:20:05.919
<v Speaker 6>a nice word for kill birds that weren't going to

0:20:06.359 --> 0:20:09.240
<v Speaker 6>make it the entire six weeks, you know, for whatever reason.

0:20:09.640 --> 0:20:11.359
<v Speaker 4>But there was a limit to what Craig could do

0:20:11.400 --> 0:20:13.520
<v Speaker 4>for his flock. After all, the integrators are the ones

0:20:13.600 --> 0:20:16.360
<v Speaker 4>sending him the baby birds themselves. They owned the chickens,

0:20:16.400 --> 0:20:18.600
<v Speaker 4>and they're the ones making decisions about what they eat,

0:20:18.840 --> 0:20:21.560
<v Speaker 4>what medicines they get, what conditions they're kept in, and

0:20:21.600 --> 0:20:23.040
<v Speaker 4>how much room they have to grow up in.

0:20:23.640 --> 0:20:26.280
<v Speaker 6>The deal was is each of my houses were twenty

0:20:26.359 --> 0:20:30.159
<v Speaker 6>thousand square feet. Well, they put thirty thousand birds in

0:20:30.240 --> 0:20:33.720
<v Speaker 6>every house, so when those chickens were they had the

0:20:33.840 --> 0:20:35.960
<v Speaker 6>same amount of space all the time. But when they

0:20:35.960 --> 0:20:38.959
<v Speaker 6>got market age, I mean it was walled a wall

0:20:39.440 --> 0:20:42.399
<v Speaker 6>in to end, just a sea of white chickens. So

0:20:42.560 --> 0:20:45.520
<v Speaker 6>if you do the math, thirty thousand chickens and twenty

0:20:45.560 --> 0:20:49.200
<v Speaker 6>thousand square feet is zero point sixty seven square foot

0:20:49.240 --> 0:20:52.760
<v Speaker 6>per bird. So there's issues within the structure of the

0:20:52.800 --> 0:20:56.600
<v Speaker 6>system that I had no control over that. It's not cruel,

0:20:57.480 --> 0:21:00.359
<v Speaker 6>but it's not about quality of life for an animal

0:21:00.400 --> 0:21:02.920
<v Speaker 6>by any means. It's about homogenizing a widget and getting

0:21:02.960 --> 0:21:05.960
<v Speaker 6>it to the plant. These chickens traits have been selected

0:21:06.000 --> 0:21:08.639
<v Speaker 6>over the years. The word that what they are. The

0:21:08.640 --> 0:21:11.679
<v Speaker 6>Americans desire for white meat is what drove what we

0:21:11.760 --> 0:21:15.520
<v Speaker 6>call the frankin chicken. The breast is very large, it's

0:21:15.680 --> 0:21:18.000
<v Speaker 6>oversized compared the rest of his body. They do have

0:21:18.040 --> 0:21:22.520
<v Speaker 6>trouble standing and they're very docile. They're not a hearty breed.

0:21:22.600 --> 0:21:25.920
<v Speaker 6>I mean, they're bread to just barely stay alive long

0:21:26.040 --> 0:21:27.960
<v Speaker 6>enough to get to the plant. So what they do

0:21:28.080 --> 0:21:29.520
<v Speaker 6>is they take a bite of feed, they take a

0:21:29.600 --> 0:21:31.760
<v Speaker 6>drink of water. They sit down. I called it three

0:21:31.800 --> 0:21:35.840
<v Speaker 6>steps and flop boom, boom, boom boom, sit down. That's

0:21:35.840 --> 0:21:36.680
<v Speaker 6>what they do all day.

0:21:37.560 --> 0:21:39.760
<v Speaker 4>In two thousand and eight, Craig reached a tipping point

0:21:39.920 --> 0:21:43.080
<v Speaker 4>frustrated by a particularly feeble flock of floppy chicken.

0:21:42.880 --> 0:21:44.640
<v Speaker 3>Sentence say that ten times fast yo.

0:21:45.080 --> 0:21:49.280
<v Speaker 4>Frustrated by a particularly feeble flock of floppy chickens, he

0:21:49.359 --> 0:21:52.640
<v Speaker 4>filmed the conditions in his own chicken house and uploaded

0:21:52.640 --> 0:21:55.680
<v Speaker 4>them to YouTube to send to his production manager at Purdue.

0:21:56.200 --> 0:21:59.200
<v Speaker 4>Soon after, he partnered with a reporter and an animal

0:21:59.280 --> 0:22:02.119
<v Speaker 4>rights activist produce an expose on chicken farming.

0:22:02.920 --> 0:22:06.080
<v Speaker 7>Craig has no control over the health or genetics of

0:22:06.119 --> 0:22:11.879
<v Speaker 7>the chicks that are delivered to him by Purdue. Bound

0:22:11.960 --> 0:22:15.160
<v Speaker 7>by contract, Craig is not even allowed to give them

0:22:15.240 --> 0:22:21.160
<v Speaker 7>sunshine or fresh air. Just thirty seven days later, they

0:22:21.200 --> 0:22:27.040
<v Speaker 7>are a sea of panting birds. Panting indicates birds are overheated.

0:22:27.359 --> 0:22:30.120
<v Speaker 7>These birds find it too painful to bear the weight

0:22:30.160 --> 0:22:32.720
<v Speaker 7>of their unnaturally large breasts on their legs.

0:22:33.200 --> 0:22:36.800
<v Speaker 3>Craig Watts ultimately prove to be something of a renegade.

0:22:36.840 --> 0:22:39.320
<v Speaker 4>For its part, a Produced spokeswoman said it works with

0:22:39.400 --> 0:22:42.240
<v Speaker 4>over eighteen hundred poultry farmers and the retention rate with

0:22:42.280 --> 0:22:45.520
<v Speaker 4>those contracts is around ninety eight percent. In a statement

0:22:45.560 --> 0:22:47.800
<v Speaker 4>to odd Lats, they also said it's been nearly ten

0:22:47.880 --> 0:22:50.800
<v Speaker 4>years since Watts was a farmer for Purdue, and in

0:22:50.840 --> 0:22:54.280
<v Speaker 4>that time it has established farmer advisory councils to gather

0:22:54.359 --> 0:22:57.119
<v Speaker 4>important feedback and insights from them on how the company

0:22:57.160 --> 0:22:57.679
<v Speaker 4>can improve.

0:22:58.560 --> 0:23:01.840
<v Speaker 3>But Craig's complaints about the imbalance of power in the

0:23:01.880 --> 0:23:04.800
<v Speaker 3>poultry industry and the health of the birds are things

0:23:04.800 --> 0:23:07.800
<v Speaker 3>that come up again and again in our conversations with

0:23:07.880 --> 0:23:12.919
<v Speaker 3>chicken farmers. For instance, Karen Crutchfield, she goes by Susie,

0:23:13.240 --> 0:23:16.040
<v Speaker 3>was a contract grower for Tyson for many years, but

0:23:16.240 --> 0:23:17.760
<v Speaker 3>she started out raising cows.

0:23:19.560 --> 0:23:23.879
<v Speaker 8>We already had a cattle farm, and so we wanted

0:23:23.880 --> 0:23:28.240
<v Speaker 8>to kind of expand out and add something else, some

0:23:28.280 --> 0:23:33.359
<v Speaker 8>more income coming in. The difference in farming cattle and

0:23:33.880 --> 0:23:38.760
<v Speaker 8>farming chickens is farming cattle, you own all the inputs.

0:23:39.080 --> 0:23:41.920
<v Speaker 8>You own, the cattle get you on the feed. You

0:23:41.920 --> 0:23:45.920
<v Speaker 8>decide what type of cattle you're going to buy. You

0:23:45.960 --> 0:23:49.040
<v Speaker 8>decide what time they leave your farm, You decide the

0:23:49.080 --> 0:23:52.760
<v Speaker 8>breeding periods. All of it is decided, but you and

0:23:52.840 --> 0:23:56.960
<v Speaker 8>you are a truly independent cattle farmer. You're independent. You

0:23:56.960 --> 0:23:59.399
<v Speaker 8>don't have nobody giving you orders or telling you what

0:23:59.440 --> 0:24:03.800
<v Speaker 8>you need, what size, what kind of feed. With chickens,

0:24:03.800 --> 0:24:07.120
<v Speaker 8>it's totally different. With chickens. You have no control over

0:24:07.200 --> 0:24:10.520
<v Speaker 8>any of the inputs. They deliver the chickens at third time,

0:24:10.840 --> 0:24:13.040
<v Speaker 8>they give them the feed that they want them to have,

0:24:13.119 --> 0:24:15.760
<v Speaker 8>They pick them up on their time. They tell you

0:24:15.800 --> 0:24:19.080
<v Speaker 8>what to do in controlling the inputs in the house,

0:24:19.200 --> 0:24:21.920
<v Speaker 8>what temperature it needs to be, what size you need

0:24:21.920 --> 0:24:24.520
<v Speaker 8>to let them out into full house. They control all

0:24:24.640 --> 0:24:29.200
<v Speaker 8>of the inputs. You were only a serf more or less.

0:24:29.320 --> 0:24:31.080
<v Speaker 8>You just have to do what they tell you. And

0:24:31.160 --> 0:24:33.800
<v Speaker 8>actually it's more like your employee of theirs.

0:24:34.600 --> 0:24:38.000
<v Speaker 3>So for Susie, following the instructions of the chicken integrator

0:24:38.119 --> 0:24:41.200
<v Speaker 3>was a must because if you don't, you risk losing

0:24:41.280 --> 0:24:43.800
<v Speaker 3>out on that contract and you might not have any

0:24:43.840 --> 0:24:45.720
<v Speaker 3>other companies to sell chickens too.

0:24:46.480 --> 0:24:49.800
<v Speaker 8>For poltry goers, there is no option of going independent

0:24:50.640 --> 0:24:52.920
<v Speaker 8>because there's nothing you can do with your barns except

0:24:52.960 --> 0:24:57.800
<v Speaker 8>raised chickens for Tyson or whatever integrator as the occasion

0:24:57.920 --> 0:25:01.720
<v Speaker 8>had to be. In my area, Tyson was the only

0:25:01.760 --> 0:25:04.040
<v Speaker 8>company in the area that we could go to. So

0:25:04.119 --> 0:25:06.440
<v Speaker 8>if your houses was shut down, they were just shut down.

0:25:06.680 --> 0:25:09.199
<v Speaker 8>You had nowhere else to go or anything else you

0:25:09.200 --> 0:25:11.880
<v Speaker 8>could do with your barns other than maybe put hay

0:25:11.960 --> 0:25:14.480
<v Speaker 8>in them. That was the only option you had. You

0:25:14.520 --> 0:25:16.000
<v Speaker 8>could not grow chickens in them.

0:25:16.400 --> 0:25:18.879
<v Speaker 4>Again, the barns are really expensive and the farmers are

0:25:18.920 --> 0:25:20.880
<v Speaker 4>often on their own when it comes to building them,

0:25:21.040 --> 0:25:23.840
<v Speaker 4>even though the integrators may be the ones asking for improvements,

0:25:24.240 --> 0:25:25.840
<v Speaker 4>which is exactly what happened to Susie.

0:25:27.200 --> 0:25:32.760
<v Speaker 8>Tyson Food started doing upgrades probably in the mid nineties,

0:25:33.720 --> 0:25:36.679
<v Speaker 8>and each time they decided to do an upgrade, it

0:25:36.800 --> 0:25:41.480
<v Speaker 8>kept costing more money. It was bigger upgrades than before,

0:25:42.200 --> 0:25:45.440
<v Speaker 8>and so the last upgrade that they called for us

0:25:45.480 --> 0:25:49.760
<v Speaker 8>to do was in twenty ten. They sent a letter

0:25:49.800 --> 0:25:54.000
<v Speaker 8>out saying that we had to do all of these upgrades.

0:25:54.440 --> 0:25:57.560
<v Speaker 8>One of the upgrades that they requested us to do

0:25:57.760 --> 0:26:02.080
<v Speaker 8>at the time was add two extra royal lights, just

0:26:02.160 --> 0:26:04.679
<v Speaker 8>one massive upgrade, and it was going to end up

0:26:04.720 --> 0:26:08.520
<v Speaker 8>costing us over three hundred thousand dollars to upgrade, and

0:26:08.600 --> 0:26:11.720
<v Speaker 8>that would actually cost on the two older houses that

0:26:11.720 --> 0:26:13.800
<v Speaker 8>were built in eighty seven, it was going to cost

0:26:13.880 --> 0:26:18.200
<v Speaker 8>us more than we had originally built the houses for

0:26:18.280 --> 0:26:22.919
<v Speaker 8>them for. And so at that point we said, no,

0:26:23.160 --> 0:26:26.240
<v Speaker 8>we're not going to do any more upgrades. The incentive

0:26:26.280 --> 0:26:29.600
<v Speaker 8>for Tyson to ask for upgrades is keep the grower

0:26:29.720 --> 0:26:32.400
<v Speaker 8>in debt. As long as the grower's in debt, they're

0:26:32.440 --> 0:26:35.040
<v Speaker 8>going to do exactly what Tyson tells them. If they

0:26:35.080 --> 0:26:38.760
<v Speaker 8>get out of debt, then they have more freedom to

0:26:38.800 --> 0:26:40.480
<v Speaker 8>say no, I don't want to do that, and I'm

0:26:40.520 --> 0:26:43.240
<v Speaker 8>not going to do that. And if they catch you off,

0:26:43.359 --> 0:26:46.359
<v Speaker 8>then you've got everything paid for. But if you're a

0:26:46.440 --> 0:26:48.480
<v Speaker 8>million dollars in debt and going to lose your home,

0:26:48.520 --> 0:26:53.959
<v Speaker 8>you're more likely to do what they say.

0:26:54.720 --> 0:26:57.840
<v Speaker 4>A Tyson spokesperson did respond for comment. When we reached out,

0:26:57.960 --> 0:27:01.280
<v Speaker 4>they said, and I quote, Foods contracts with a network

0:27:01.320 --> 0:27:04.240
<v Speaker 4>of thousands of independent growers across the country, and we

0:27:04.320 --> 0:27:07.080
<v Speaker 4>value the contributions that these growers make to our business.

0:27:07.520 --> 0:27:09.879
<v Speaker 4>We depend on growers, and the contracts we have in

0:27:09.920 --> 0:27:12.679
<v Speaker 4>place incentivized growers to raise high quality birds.

0:27:13.800 --> 0:27:17.000
<v Speaker 3>One contract grower who did lose it all is Michael Diaz.

0:27:17.680 --> 0:27:20.639
<v Speaker 3>The Diasas used their life savings to put down a

0:27:20.720 --> 0:27:24.040
<v Speaker 3>deposit on fifty acres of land back in twenty eighteen,

0:27:24.560 --> 0:27:27.760
<v Speaker 3>with a home and four chicken houses. It was supposed

0:27:27.800 --> 0:27:29.520
<v Speaker 3>to be agricultural bliss.

0:27:31.400 --> 0:27:34.560
<v Speaker 5>Farming was something that I had always dreamed of doing,

0:27:35.080 --> 0:27:38.240
<v Speaker 5>but it wasn't something that I saw as being very

0:27:38.280 --> 0:27:44.240
<v Speaker 5>feasible to do given the monetary constraints. I mean, you

0:27:44.280 --> 0:27:46.320
<v Speaker 5>need a large piece of property. You needed to make

0:27:46.359 --> 0:27:48.600
<v Speaker 5>a lot of capital investments to get into any kind

0:27:48.600 --> 0:27:51.720
<v Speaker 5>of farming. The magnitude of what we had bought didn't

0:27:51.800 --> 0:27:58.879
<v Speaker 5>sink in. But there were other farmers in the area.

0:27:59.000 --> 0:28:03.360
<v Speaker 5>They weren't poultry farmers, but some of them knew of

0:28:03.400 --> 0:28:07.800
<v Speaker 5>some poultry farms. They were friends with some of these guys,

0:28:08.680 --> 0:28:12.720
<v Speaker 5>and there was always this kind of this thought process

0:28:12.800 --> 0:28:16.000
<v Speaker 5>that these guys that own these poultry farms that you know,

0:28:16.080 --> 0:28:18.840
<v Speaker 5>these barns are fifty by five hundred feet long, and

0:28:20.000 --> 0:28:22.679
<v Speaker 5>some of them bigger than that. You know, you always

0:28:22.680 --> 0:28:25.119
<v Speaker 5>felt like they were because they had a lot of

0:28:25.160 --> 0:28:28.880
<v Speaker 5>capital investments. You thought they must have had good cash flow,

0:28:28.920 --> 0:28:32.239
<v Speaker 5>they must have been living good lives. They were in

0:28:32.320 --> 0:28:36.320
<v Speaker 5>contract with some of these household brands that you see

0:28:36.359 --> 0:28:39.760
<v Speaker 5>on every grocery store shelf that you tend to start trusting,

0:28:39.840 --> 0:28:46.440
<v Speaker 5>right you see these names. You know, I'll pick on others.

0:28:46.480 --> 0:28:49.000
<v Speaker 5>You know, you see a name like Heinz Ketchup, or

0:28:49.000 --> 0:28:53.680
<v Speaker 5>you see a name like Hormel or whatever. What I'm

0:28:53.720 --> 0:28:56.880
<v Speaker 5>trying to allude to is you see these brands that

0:28:56.920 --> 0:29:00.600
<v Speaker 5>have been in your face year after year from childhood

0:29:00.600 --> 0:29:04.320
<v Speaker 5>to adulthood, a staple in our food system. Say you

0:29:04.400 --> 0:29:06.680
<v Speaker 5>tend to trust these brands or doing the right thing.

0:29:07.360 --> 0:29:10.320
<v Speaker 4>But Michael's integrator kept asking for more investments, and he

0:29:10.360 --> 0:29:13.200
<v Speaker 4>struggled to keep up on this loan payment. Michael thinks

0:29:13.200 --> 0:29:16.040
<v Speaker 4>he spent something like one hundred thousand dollars on unexpected

0:29:16.120 --> 0:29:17.840
<v Speaker 4>upgrades in just two years.

0:29:18.480 --> 0:29:21.760
<v Speaker 5>I kept thinking that this is just going to sink

0:29:21.840 --> 0:29:25.240
<v Speaker 5>me deeper and deeper and deeper and deeper into debt.

0:29:25.680 --> 0:29:28.240
<v Speaker 5>This dream of me being able to pay this place

0:29:28.320 --> 0:29:32.840
<v Speaker 5>off and eventually build something that's generational for my family

0:29:32.960 --> 0:29:35.640
<v Speaker 5>is not going to exist, and I said, I'm not

0:29:35.680 --> 0:29:35.920
<v Speaker 5>doing it.

0:29:36.040 --> 0:29:39.480
<v Speaker 3>Michael Diaz ended up selling the farm, losing his life

0:29:39.560 --> 0:29:43.120
<v Speaker 3>savings in the process. He later sued his integrator, arguing

0:29:43.120 --> 0:29:46.240
<v Speaker 3>that chicken farmers in the tournament system should be classified

0:29:46.280 --> 0:29:51.520
<v Speaker 3>as employees of integrators instead of independent contractors. That litigation

0:29:51.800 --> 0:29:52.560
<v Speaker 3>is still pending.

0:29:53.240 --> 0:29:56.320
<v Speaker 4>Susie Crutchfield filed for bankruptcy and is still paying off

0:29:56.320 --> 0:30:00.000
<v Speaker 4>her debt. Interestingly, Craig Watts didn't lose his chicken farming

0:30:00.080 --> 0:30:03.560
<v Speaker 4>contract with Purdue after filming his barns, but the relationship

0:30:03.600 --> 0:30:08.480
<v Speaker 4>obviously soured. Craig filed a whistleblower complaint Purdue countersuit that's

0:30:08.560 --> 0:30:09.120
<v Speaker 4>pending too.

0:30:09.680 --> 0:30:11.840
<v Speaker 3>All three of them are now part of the Socially

0:30:11.880 --> 0:30:16.600
<v Speaker 3>Responsible Agriculture Project SRAP, where they work on a contract

0:30:16.640 --> 0:30:20.720
<v Speaker 3>Grower Transition program, which aims to help poultry farmers navigate

0:30:20.760 --> 0:30:25.120
<v Speaker 3>the thunderdome and the pile of manure, both figurative and literal,

0:30:25.400 --> 0:30:28.080
<v Speaker 3>that comes with it. Here's Michael Diez again.

0:30:28.920 --> 0:30:32.800
<v Speaker 5>The person that has all the risk, all the liability

0:30:33.680 --> 0:30:36.720
<v Speaker 5>is the farmer. He's the one that's in debt for

0:30:36.760 --> 0:30:39.520
<v Speaker 5>these barns. He's the one that's in debt for all

0:30:39.560 --> 0:30:43.160
<v Speaker 5>the facilities, the upgrades, the equipment. He's the one that's

0:30:43.200 --> 0:30:45.440
<v Speaker 5>in debt that he's got to figure out, what in

0:30:45.440 --> 0:30:47.800
<v Speaker 5>the world do I do with all this manure that

0:30:47.840 --> 0:30:50.040
<v Speaker 5>I have here on this on this site. I've got

0:30:50.080 --> 0:30:51.960
<v Speaker 5>to get rid of at half of them have nothing

0:30:52.000 --> 0:30:55.080
<v Speaker 5>that they can do with it. Everything that is that

0:30:55.240 --> 0:31:00.280
<v Speaker 5>is a liability the farmer has. The integrator is the

0:31:00.280 --> 0:31:02.640
<v Speaker 5>only one that's got anything that's able to build a profit.

0:31:12.760 --> 0:31:15.520
<v Speaker 3>That is not the sound of chickens, clearly, but I

0:31:15.600 --> 0:31:19.160
<v Speaker 3>promise it will be relevant in a second contract growers

0:31:19.200 --> 0:31:22.360
<v Speaker 3>in the poultry world carry most of the potential downside

0:31:22.440 --> 0:31:26.560
<v Speaker 3>risks of chicken farming, while big chicken the integrators, enjoy

0:31:26.640 --> 0:31:29.760
<v Speaker 3>most of the upside. They hog the benefits and pass

0:31:29.800 --> 0:31:32.720
<v Speaker 3>on the risks, and that model is becoming more common,

0:31:33.320 --> 0:31:36.080
<v Speaker 3>as the state of pig farming in Iowa shows.

0:31:36.280 --> 0:31:38.600
<v Speaker 4>At any given time, there are some twenty eight million

0:31:38.720 --> 0:31:41.600
<v Speaker 4>hogs being raised in Iowa, making it America's biggest pig

0:31:41.640 --> 0:31:44.840
<v Speaker 4>farming state, Iowa now produces nearly a third of America's

0:31:44.880 --> 0:31:46.040
<v Speaker 4>total hog supply.

0:31:46.160 --> 0:31:49.720
<v Speaker 3>And speaking of manure, Iowa's pig population and what it

0:31:49.800 --> 0:31:54.080
<v Speaker 3>produces has become a big debate. People generally don't want

0:31:54.080 --> 0:31:56.920
<v Speaker 3>to live next to big pig farms for obvious reasons,

0:31:57.200 --> 0:32:00.719
<v Speaker 3>and huge lagoons of manure can get into the water supply.

0:32:01.160 --> 0:32:04.840
<v Speaker 3>One analysis of USDA data shows that the manure produced

0:32:04.880 --> 0:32:09.000
<v Speaker 3>by Iowa's pigs has grown by almost eighty percent between

0:32:09.000 --> 0:32:10.680
<v Speaker 3>twenty two and twenty twenty.

0:32:12.000 --> 0:32:15.239
<v Speaker 4>Austin Ferk is also a member of the SRAP. He's

0:32:15.280 --> 0:32:18.280
<v Speaker 4>an agricultural Ana Trust expert who grew up in Iowa

0:32:18.360 --> 0:32:20.800
<v Speaker 4>had a front row seat to the state's transformation to

0:32:20.920 --> 0:32:22.520
<v Speaker 4>prime pig territory.

0:32:23.160 --> 0:32:26.920
<v Speaker 3>As Austin points out, Iowa's pork industry didn't always look

0:32:27.040 --> 0:32:30.200
<v Speaker 3>like this. Modern pig producers took a lot of inspiration

0:32:30.320 --> 0:32:32.840
<v Speaker 3>from you guessed it, chickens.

0:32:34.600 --> 0:32:36.560
<v Speaker 9>What you saw happened in the eighties is a state

0:32:36.640 --> 0:32:40.600
<v Speaker 9>senator deregulated the pork industry in North Carolina to allow

0:32:40.960 --> 0:32:44.800
<v Speaker 9>the industrialization of pork production, copying that model chickenization, where

0:32:44.840 --> 0:32:48.160
<v Speaker 9>he owned the animal. He had other people and these

0:32:48.200 --> 0:32:51.080
<v Speaker 9>metal sheds. You'd give them his pigs, they would grow

0:32:51.120 --> 0:32:53.360
<v Speaker 9>them out, and then he would sell them, butcher them,

0:32:53.400 --> 0:32:56.720
<v Speaker 9>what have you. The business elite in Iowa saw what

0:32:56.840 --> 0:32:59.760
<v Speaker 9>was happening in North Carolina and they saw the massive

0:33:00.120 --> 0:33:02.520
<v Speaker 9>production increase is going on there, and they were like,

0:33:02.760 --> 0:33:05.040
<v Speaker 9>we're not going to lose our number one status. We're

0:33:05.040 --> 0:33:06.600
<v Speaker 9>going to gauge in this race to the bottom.

0:33:06.880 --> 0:33:09.320
<v Speaker 4>And actually there's a name for this trend, chickenization.

0:33:10.240 --> 0:33:12.440
<v Speaker 9>We are going to chickenize the pork industry in Iowa,

0:33:13.080 --> 0:33:15.520
<v Speaker 9>and if we have to kill the family farm, so

0:33:15.600 --> 0:33:18.600
<v Speaker 9>be it, because it's all about selling more quarancy the

0:33:18.640 --> 0:33:22.560
<v Speaker 9>whole supply chain around it, maintaining that dominance instead of

0:33:22.600 --> 0:33:25.880
<v Speaker 9>having chicken behave like the other industries. It became a

0:33:25.960 --> 0:33:30.280
<v Speaker 9>race to the bottom chickenization. Everything is being chickenized, where

0:33:30.360 --> 0:33:34.360
<v Speaker 9>you just apply this really abusive power structure to different

0:33:34.400 --> 0:33:38.680
<v Speaker 9>modes of commodity production because it shifts the riskiest part

0:33:38.880 --> 0:33:43.560
<v Speaker 9>to the worker and the corporate shareholders get the upside

0:33:43.600 --> 0:33:43.840
<v Speaker 9>of it.

0:33:44.160 --> 0:33:47.960
<v Speaker 3>And that's arguably helped big Chicken just get bigger. Chicken

0:33:48.040 --> 0:33:51.640
<v Speaker 3>is now dominated by large commercial breeders and processors. With

0:33:51.680 --> 0:33:55.040
<v Speaker 3>a handful of companies commanding sixty percent of the US

0:33:55.160 --> 0:33:56.920
<v Speaker 3>chicken market, the.

0:33:56.920 --> 0:33:59.520
<v Speaker 9>Chicken industry is pretty concentrated. It's not even just the

0:33:59.560 --> 0:34:02.960
<v Speaker 9>concentrate of slaughtering the animal, it's the whole supply chain.

0:34:03.240 --> 0:34:06.040
<v Speaker 9>The whole goal of the company is from the genetics

0:34:06.040 --> 0:34:08.399
<v Speaker 9>of the thing that hatches to the chicken tenders eating

0:34:08.440 --> 0:34:11.680
<v Speaker 9>the store. That whole thing has been highly vertically integrated.

0:34:12.400 --> 0:34:16.920
<v Speaker 3>So chickens have grown fatter, more horizontal. At the same time,

0:34:17.080 --> 0:34:20.360
<v Speaker 3>the chicken industry as a whole has become more concentrated,

0:34:20.640 --> 0:34:24.480
<v Speaker 3>more top down, more vertical, more powerful in terms of

0:34:24.480 --> 0:34:27.520
<v Speaker 3>what they can extract from farmers and their birds. And

0:34:27.560 --> 0:34:31.720
<v Speaker 3>that business model is spreading across agriculture and even beyond.

0:34:32.280 --> 0:34:32.480
<v Speaker 2>Right.

0:34:32.600 --> 0:34:35.480
<v Speaker 4>You know, people think of companies like Uber as pioneering

0:34:35.520 --> 0:34:39.160
<v Speaker 4>some novel business model, but the rise of independent contractors

0:34:39.160 --> 0:34:42.120
<v Speaker 4>with more risk being foisted on people who resemble employees

0:34:42.600 --> 0:34:43.960
<v Speaker 4>is a large and growing phenomenon.

0:34:44.560 --> 0:34:47.600
<v Speaker 3>Next up on beat capitalism, what can be done to

0:34:47.719 --> 0:34:51.240
<v Speaker 3>tip the balance of power back towards consumers and workers.

0:34:51.800 --> 0:34:58.760
<v Speaker 3>It's time to talk about unclucking the system.

0:34:59.000 --> 0:35:02.000
<v Speaker 4>Beat Capitalism is written by Tracy Alloway, Carmen Rodriguez and

0:35:02.080 --> 0:35:02.840
<v Speaker 4>Joe Wisenthal.

0:35:03.200 --> 0:35:05.960
<v Speaker 3>This short series was produced and edited by Carmen with

0:35:06.040 --> 0:35:08.440
<v Speaker 3>the help of Kale Brooks and Dashel Bennett.

0:35:08.600 --> 0:35:11.440
<v Speaker 4>The fact checking of industry puns and other information was

0:35:11.480 --> 0:35:13.120
<v Speaker 4>brought to you by Dash and Kale.

0:35:13.280 --> 0:35:16.520
<v Speaker 3>The chickenization of our regular All Blocks theme song and

0:35:16.600 --> 0:35:19.600
<v Speaker 3>the mixing is done by our sound engineer, Blake Maples.

0:35:19.880 --> 0:35:22.840
<v Speaker 4>Brendan Newnham is our executive producer, and Sage Bauman is

0:35:22.880 --> 0:35:24.279
<v Speaker 4>Bloomberg's Head of Podcasts.

0:35:24.719 --> 0:35:26.680
<v Speaker 3>Special thanks to Compassion.

0:35:26.160 --> 0:35:29.319
<v Speaker 4>In World Farming and if you enjoyed this deep dive

0:35:29.400 --> 0:35:32.720
<v Speaker 4>into the chicken industry, please consider leaving a positive review

0:35:32.760 --> 0:35:35.280
<v Speaker 4>on your favorite podcast platform. Thanks for listening.

0:35:39.440 --> 0:35:43.239
<v Speaker 3>This episode has been updated to reflect a clarification. It

0:35:43.400 --> 0:35:47.000
<v Speaker 3>wasn't until twenty thirteen that Craig Watts sent a film

0:35:47.040 --> 0:35:50.320
<v Speaker 3>of his barnes to his production manager. In twenty fourteen,

0:35:50.480 --> 0:35:53.719
<v Speaker 3>he partnered with a human rights activist and journalist to

0:35:53.800 --> 0:36:01.799
<v Speaker 3>produce a documentary on chicken farm um