Meat Products Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 3,500 meat manufacturing facilities in the US slaughter, process, and package meat protein products; principally beef, pork, and poultry. Meat manufacturing operations are comprised of three main processes: animal slaughtering, meat processing and packing, and rendering non-edible waste into useable byproducts. Larger manufacturers may engage in all of these activities, while smaller manufacturers may have much more limited or specialized operations.

Increased Government Regulation

Meat products manufacturers are subject to extensive federal, state and local laws and regulations by authorities that oversee slaughtering and processing, packaging, storage, distribution, advertising, labeling, food safety standards, and export of meat products.

Volatile Raw Material Prices

Meat products manufacturers’ results of operations and financial condition are highly dependent upon the cost and supply of commodity based raw materials, such as feed grains and live animals.

Industry size & Structure

The average meat products manufacturer employs 190 workers and generates $78 million in annual revenue.

    • There are 3,500 federally inspected meat and poultry slaughtering and processing plants in the US employing about 538,500 people and generating annual revenue of $221 billion.
    • In beef and pork processing, the top 8 companies, including Cargill, Tyson Foods, JBS, and Smithfield Foods, control 63% of revenue.
    • In poultry processing, the top 8 companies, including Pilgrim's Pride, Tyson Foods, Perdue, Sanderson Farms and Koch Foods, control 54% of revenue.
    • The US is the world's largest producer of chicken, representing about 20% of the total world production.
    • One of the largest slaughterhouse in the world is operated by the Smithfield Packing Company in Tar Heel, North Carolina and is capable of butchering over 30,000 hogs a day.
    • The top livestock and poultry slaughtering states are: Cattle - Nebraska, Kansas, Texas; Hogs - Iowa, North Carolina, Illinois; Chicken - Georgia, Arkansas, Alabama; and Turkey - Minnesota, North Carolina, Arkansas.
                                  Industry Forecast
                                  Meat Products Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  May 4, 2022 - Demand Supports Higher Prices
                                  • Shoppers’ demand for meat remains strong despite price hikes attributed to increased feed, energy and labor costs, and ongoing supply chain issues, according to a CoBank report released in May. The report showed that combined cutout values of beef, pork and chicken climbed 22% year-over-year during the first quarter of 2022 and said consumers should expect to see higher prices at the market. While higher retail prices for meat are expected to continue throughout 2022, consumers feeling the pinch of inflation are likely to trade down, with chicken being the primary beneficiary, according to the report.
                                  • US beef cattle inventory is declining due to ongoing drought conditions in the West and modest feeder cattle prices, Meat + Poultry reported in May 2022. Significant declines were seen in South Dakota, Texas, Missouri, and Montana, according to the US Department of Agriculture National Agricultural Statistics Service (NASS). Sow herds also shrank nearly 6% over the last three years, starting with losses sustained in 2018-19. Currently, the USDA is forecasting a 2% decline in US beef and pork for 2022. Although smaller herds and flocks mean growth opportunity is minimal across all protein sectors, chicken may be best positioned for expansion, albeit not to the degree that occurred from 2015 to 2019.
                                  • Meat products manufacturers may benefit from new training programs cropping up across the nation. Penn State University launched its butcher program in 2022 to train a new generation of processors, according to the American Association of Meat Processors. The Niche Neat Processor Assistance Network is expanding its Western Meat School program with virtual learning opportunities. Two Minnesota colleges are expected to start training programs in 2022 for animal slaughter, butchery, and meat processing. Labor shortages have become an issue for meat products manufacturers.
                                  • Demand from farmers for mobile slaughter services is rising. The industry sees mobile as a way to increase capacity and reduce costs because animal transport is eliminated. Meat quality is also improved because animals undergo less stress. In addition, processing on the farm promotes and benefits the farm-to-table movement as buyers don’t question where the meat is sourced.
                                  • The Biden administration said that it will strengthen regulatory protections for livestock and poultry producers in their dealings with meatpackers. Analysts say that ranchers and cattle feeders have complained that the prices meatpacking companies pay for cattle have barely budged even as the cost of beef at the grocery store has soared. Four giant companies control more than 80% of US beef processing, and pork and chicken processing also are dominated by only a few companies.
                                  Get A Demo

                                  Vertical IQ’s Industry Intelligence Platform

                                  See for yourself why nearly 40,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                  Build valuable, lasting relationships by having smarter conversations -
                                  check out Vertical IQ today.

                                  Request A Demo