It's not good for high volume, but apparently the preferred method for killing chickens is to grab the feet, grab the head, and pull until you feel a little *pop*, severing the spinal cord.
A coworkers former college roommate was working at a Tyson Chicken plant as part of his agricultural management degree. The interns all had to learn all the positions on the line as part of the management training. When it came his turn to kill the chicken, he pulled too hard and ripped it's head off. It did the running around spraying blood thing, as expected. He got ribbed about it the rest of his time at the plant.
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