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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation 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.

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

                                  Recent Developments

                                  Nov 10, 2022 - Pressure to Eliminate Gestation Crates
                                  • The pork industry practice of confining pregnant sows to gestation crates is under attack from animal welfare activists and the broader food industry who say the practice constitutes animal abuse. Gestation crates enclose mother pigs in tight spaces about seven feet by two feet — an area barely larger than the pig's body. Gestation crates for mother pigs have been banned in 10 US states including California, Florida, and Michigan. Nearly 100 companies in the US have also committed to banning the crates, including Aramark, Nestlé, Campbell’s, and Kraft Heinz. The Supreme Court in October heard arguments that California’s Proposition 12 -- defining the minimum amount of space farmers must give to cows, pigs, and chicken -- violates a US law by regulating pig producers and the pig market outside the state. The pork industry argues Prop 12 will force a nationwide overhaul of its practices.
                                  • Inflation and avian flu outbreaks are driving up the price of turkeys this Thanksgiving, USA Today reported in October. The Consumer Price Index shows the cost of uncooked poultry, including turkey, rose 17% in September from the same month last year. The average cost per pound of a whole frozen turkey in November was about $1.47, compared to $1.15 last year, according to US Department of Agriculture data. The impact of inflation is being compounded by the spread of avian flu, with poultry producers reporting more than 44.6 million affected birds in domestic flocks – mostly chicken and turkey– across 43 states, according to USA Today. With turkey production down due to the bird flu, poultry industry leader Hormel is predicting they’ll have 20% fewer turkeys available through early 2023.
                                  • Arkansas in October 2022 became the 29th US state to participate in the State Meat and Poultry Inspection (MPI) program. Under the MPI program, administered by the US Department of Agriculture's Food Safety and Inspection Service (FSIS), state inspection programs must develop, administer, and enforce requirements “at least equal to” those implemented under the Federal Meat Inspection Act (FMIA) when inspecting meat products produced for shipment within the state. Cooperation between individual states and the USDA is intended to strengthen the US food system and help prevent supply chain bottlenecks. The USDA says the MPI program is especially helpful to small meat and poultry processors in building their local and state marketplaces. The FSIS provides up to 50% of the state's operating funds, as well as training and other assistance.
                                  • An increase in supply and softening consumer demand are causing the price of beef to fall after more than a year of increases, according to The Wall Street Journal. Retail beef prices declined 0.7% for the four-week period ended Aug. 7, 2022 compared with the year earlier period, according to data from research firm Information Resources Inc. (IRI). That decline came after beef prices fell 1% during the prior four-week period, which was the first monthly decline since June 2021. US retail beef prices hadn't fallen for two straight months in over a year and a half, though prices remain historically high, WSJ reported. Prices for rib-eye and beef loin fell nearly 10% for the four weeks ended Aug. 7 compared with a year ago, while brisket fell about 18%. Ground beef prices increased about 7% over the period, compared with a roughly 20% increase in January, IRI data shows.
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