Meat Product Manufacturing Industry Profile

The US meat products manufacturing industry includes about 3,000 companies with combined annual revenue of about $175 billion. Major companies include Tyson Foods, Smithfield Foods, and Pilgrim's Pride. Tyson is the largest beef company, Smithfield the largest pork company, and Pilgrim's Pride the largest poultry company. The slaughtering segment of the industry is highly concentrated: the 50 largest companies generate about 90 percent of segment revenue. The secondary processing segment, meat processed from carcasses, is also concentrated: the top 50 companies generate about 65 percent of segment revenue. Poultry processing is highly concentrated: the top 50 companies generate more than 90 percent of revenue.

About 245 million metric tons of pork, poultry, and beef are manufactured worldwide each year, including about 42 million metric tons manufactured in the US. The US, EU, Brazil, and China are the largest meat producers. Major companies outside the US include JBS and BRF-Brasil Foods (both headquartered in Brazil); Nippon Meat Packers (Japan); Danish Crown (Denmark); Irish Food Processors (Ireland); and Shuanghui Group (China).

COMPETITIVE LANDSCAPE

Demand is driven by consumer income and by exports. Because meat is largely a commodity, the profitability of individual companies depends on efficient operations and an effective distribution network. Large companies have big economies of scale in production and distribution. Small companies can compete effectively in a local area or by producing unique products. The industry is capital-intensive: average annual revenue per ...