Meat and poultry processing industries have remodeled over the a long time as packers constructed huge vegetation to reach economies of scale. Processors additionally shaped tighter linkages with a reorganized cattle manufacturing sector to guarantee a loyal provide of cattle to stay vegetation at close to complete capability. The ones transformations ended in placing will increase in focus, specifically in slow-growing red meat and pork industries, whilst additionally resulting in decrease prices in cattle manufacturing and slaughter. Alternatively, whilst there have been some important mergers amongst processors, a lot of the expansion in focus took place from the development of latest, or the growth of, current vegetation by means of the huge processors, reasonably than from mergers amongst opponents.
In 2019, 67% of the rustic’s hogs had been processed by means of the 4 main processors. The proportion in 1980 was once part that at 34%.
Crops dealing with a minimum of 1 million hogs accounted for 38% of hog slaughter in 1977 however for 88% by means of 1997.
Till the early 1990’s, farmers raised pigs “farrow to complete” and offered market-weight hogs to a packer in a money marketplace transaction. Via the early 2000’s, maximum hogs had been raised by means of farmers underneath a manufacturing contract with an integrator. Now, lower than 10% of hogs are offered thru money markets.
June 2023/ USDA/ United States.
https://www.ers.usda.gov