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

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  • 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.

Suggested Citation

  • Ollinger, Michael & Nguyen, Sang V. & Blayney, Donald P. & Chambers, William & Nelson, Kenneth B., 2005. "Structural Change in the Meat, Poultry, Dairy and Grain Processing Industries," Economic Research Report 7217, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:7217
    DOI: 10.22004/ag.econ.7217
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    References listed on IDEAS

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    6. Manchester, Alden C. & Blayney, Donald P., 1997. "Structure of Dairy Markets: Past, Present, Future," Agricultural Economic Reports 33929, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Lukáš Čechura & Tinoush Jamali Jaghdani, 2021. "Market Imperfections within the European Wheat Value Chain: The Case of France and the United Kingdom," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    2. Tina L. Saitone & K. Aleks Schaefer & Daniel Scheitrum & Shawn Arita & Vince Breneman & Rebecca Nemec Boehm & Josh G. Maples, 2024. "Consolidation and Concentration in U.S. Meat Processing: Updated Measures Using Plant-Level Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 64(1), pages 35-56, February.
    3. Mac Clay, Pablo & Feeney, Roberto & Sellare, Jorge, 2024. "Technology-driven transformations in agri-food global value chains: The role of incumbent firms from a corporate venture capital perspective," Food Policy, Elsevier, vol. 127(C).
    4. Blank, Steven C. & Volpe, Richard J. III & Erickson, Kenneth W., 2008. "The relationship between industry structure and production contracting: raising questions at the beginning of a trend," 2008 Annual Meeting, June 23-24, 2008, Big Sky, Montana 291743, Western Agricultural Economics Association.
    5. Baker, Brian & Russell, June, 2016. "Capturing a Value-Added Niche Market: Articulation of Local Organic Grain," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 252706, Agricultural and Applied Economics Association.
    6. Harris, Keith D., . "Red Arrow Products Smokin’ Into the Future: Facing Changing Diets and New Challenges in the Food Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(4), pages 1-15.
    7. Xiaowei Cai & Kyle W. Stiegert, 2013. "Economic analysis of the US fluid milk industry," Applied Economics Letters, Taylor & Francis Journals, vol. 20(10), pages 971-977, July.
    8. 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.
    9. 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, vol. 105, pages 1-10, January.
    10. Kim, Sounghun, . "Market Concentration of the Processed Food in Korea," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 31(5), pages 1-23.
    11. Ollinger, Michael & Nguyen, Sang V. & Blayney, Donald P. & Chambers, William & Nelson, Kenneth B., 2005. "Effect of Food Industry Mergers and Acquisitions on Employment and Wages," Economic Research Report 7250, United States Department of Agriculture, Economic Research Service.
    12. Čechura, Lukáš & Jamali Jaghdani, Tinoush, 2021. "Market imperfections within the European wheat value chain: The case of France and the United Kingdom," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(9).
    13. He, Xi, "undated". "Bigger Farms and Bigger Food Firms-The Agricultural Origin of Industrial Concentration in the Food Sector," 2018 Annual Meeting, August 5-7, Washington, D.C. 274206, Agricultural and Applied Economics Association.
    14. Diana Stuart & Michelle Worosz, 2012. "Risk, anti-reflexivity, and ethical neutralization in industrial food processing," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(3), pages 287-301, September.
    15. Alexander, Corinne E. & Hurt, Chris & Lara-Chavez, Angel, 2005. "Cash Market Storage Returns for Corn," Purdue Agricultural Economics Report 188886, Purdue University, Department of Agricultural Economics.
    16. 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.
    17. Sang V. Nguyen & Michael Ollinger, 2009. "Mergers and acquisitions, employment, wages, and plant closures in the U.S. meat product industries," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 70-89.

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