Costco building bigass chicken slaughterhouse in Nebraska. Full production be about 2 million birds per week, which is about 40% of their chicken sales. Damn that's a lot of birds.
Chicken industry is down to a few major players. Costco would be entering the market to control the supply for part of their demand.
Their offers to area farmers is a 15-year contract. These aren't existing chicken farms. Farmer would go in debt about $1 million to build 4 barns that could handle 200,000 birds. They'll need at least 100 farms like that.
I don't know enough about modern day corporate contract type farming to know if that's a decent deal or not.
I would worry about what could happen if a few years down the road Costco gets some bad management, or a competitor swipes some of their customers, or for whatever reason people just buy less chickens from them, and I'm left holding a contract with somebody who won't buy enough chickens anymore and my million dollar debt isn't anywhere near paid off.
For some reason that keeps going to an audio link. Click the blue title in it and you can read it instead.