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Structural Change in the Meat, Poultry, Dairy and Grain Processing Industries

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Author Info

  • Ollinger, Michael
  • Nguyen, Sang V.
  • Blayney, Donald P.
  • Chambers, William
  • Nelson, Kenneth B.

Abstract

Consolidation and structural changes in the food industry have had profound impacts on firms, employees, and communities in many parts of the United States. Over 1972-92, eight important food industries underwent a structural transformation in which the number of plants declined by about one-third and the number of employees needed to staff the remaining plants dropped by more than 100,000 (20 percent). The number of plants in one other industry also dropped, but that industry added jobs. Economists generally attribute structural changes such as these to rising or falling demand and shifts in technology. This report examines consolidation and structural change in meatpacking, meat processing, poultry slaughter and processing, cheese products, fluid milk, flour milling, corn milling, feed, and soybean processing. Plant size and output per employee rose sharply in all industries, and even industries with rapidly growing demand—such as soybean processing and poultry slaughter/processing—used fewer plants. These findings suggest that technological change was the major force driving structural change.

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Bibliographic Info

Paper provided by United States Department of Agriculture, Economic Research Service in its series Economic Research Report with number 7217.

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Date of creation: 2005
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Handle: RePEc:ags:uersrr:7217

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Related research

Keywords: structural change; food processing; consolidation; grain processing; meat slaughter; dairy processing; Industrial Organization;

References

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  1. Manchester, Alden C. & Blayney, Donald P., 1997. "Structure of Dairy Markets: Past, Present, Future," Agricultural Economics Reports 33929, United States Department of Agriculture, Economic Research Service.
  2. Ollinger, Michael & MacDonald, James M. & Madison, Milton, 2000. "Structural Change In U.S. Chicken And Turkey Slaughter," Agricultural Economics Reports 34049, United States Department of Agriculture, Economic Research Service.
  3. MacDonald, James M. & Ollinger, Michael & Nelson, Kenneth E. & Handy, Charles R., 2000. "Consolidation In U.S. Meatpacking," Agricultural Economics Reports 34021, United States Department of Agriculture, Economic Research Service.
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Cited by:
  1. Ollinger, Michael & Nguyen, Sang V. & Blayney, Donald P. & Chambers, William & Nelson, Kenneth B., 2006. "Food Industry Mergers and Acquisitions Lead to Higher Labor Productivity," Economic Research Report 7246, United States Department of Agriculture, Economic Research Service.
  2. Kim, Sounghun, 2008. "Market Concentration of the Processed Food in Korea," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 31(5), November.
  3. Cai, Xiaowei & Stiegert, Kyle W., 2012. "Economic Analysis of the U.S. Fluid Milk Industry," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124939, Agricultural and Applied Economics Association.
  4. Robert D. Weaver, 2008. "Collaborative pull innovation: origins and adoption in the new economy," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 388-402.
  5. Diana Stuart & Michelle Worosz, 2012. "Risk, anti-reflexivity, and ethical neutralization in industrial food processing," Agriculture and Human Values, Springer, vol. 29(3), pages 287-301, September.
  6. Konig, Gabor & Nagy Orbanne, Maria, 2007. "Hungarian meat sector restructuration in the post-EU accession period," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 105, January.

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