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The effects of U.S. poultry industry consolidation on employee productivity and labor costs

Author

Listed:
  • Saitone, Tina L.
  • Schaefer, K. Aleks
  • Scheitrum, Daniel P.
  • Arita, Shawn
  • Breneman, Vince
  • Nemec Boehm, Rebecca

Abstract

In this paper, we consider the relationship between poultry processing industry concentration and labor costs at the industry level using plant-level data for all poultry processing facilities in the U.S. We find that plant acquisition by an industry leader firm generates an increase in future sales-per-employee at the plant in subsequent periods. Increased ownership concentration at both the national and state-level leads to a reduction in poultry processing worker renumeration, relative to the compensation for comparable jobs in other sectors. Relative to concentration and consolidation levels 25 years ago, these developments have led to between $37 and $710 million in additional revenues per year and between $27 and $218 million savings in the aggregate wage bill for the four largest poultry firms, implying a 2.6–12.0% increase in the gross labor margin for these firms.

Suggested Citation

  • Saitone, Tina L. & Schaefer, K. Aleks & Scheitrum, Daniel P. & Arita, Shawn & Breneman, Vince & Nemec Boehm, Rebecca, 2026. "The effects of U.S. poultry industry consolidation on employee productivity and labor costs," Food Policy, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:jfpoli:v:142:y:2026:i:c:s0306919226000473
    DOI: 10.1016/j.foodpol.2026.103080
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    Keywords

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    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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