U.S. Meatpacking: Dynamic Forces of Change in a Mature Industry

Meatpacking in the United States is a mature industry. Overall domestic per capita meat consumption levels have been stable for the past 25 years. As typical of mature industries, meatpackers compete by reducing costs through technical change, increasing in size and scope through acquisition or vertical coordination and by expanding into developing international markets. Meatpackers have also gained subtle product differentiation and pricing advantages and modest brand loyalty by vertically coordinating genetics, feeding, and processing. This has resulted in improved ability to meet consumer demands; enhancing revenues rather than simply competing on costs.