Philadelphia, PA - Industry leaders expect even fewer but larger meat companies in years to come, continuing the trend of meat packer consolidation.
According to USDA, concentration in the industry will continue. Efficiency seems to be at the heart of consolidation.
Livestock producers have argued that fewer meat companies mean less competition for their cattle, hogs, and lamb, which reduces the prices they are paid. USDA contends that more companies rather than fewer is better for the industry, but the trend is toward fewer.
During testimony in June before a U.S. Senate agriculture committee, American Meat Institute President J. Patrick Boyle said becoming larger and more efficient was one way packing companies will survive. The other was to create markets and demand for their products either through exports or develop niche- market products that command premium prices.
In the latest edition of Meat and Poultry Facts, an American Meat Institute publication, four beef packing companies processed nearly 70% of the cattle slaughtered last year versus 56.6% 10 years ago. The four largest pork companies processed 67.6% of the hogs versus 56.6% 10 years ago.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
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