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Previous research found a positive relationship between concentration and total factor productivity in food manufacturing. One industry (i.e., meatpacking plants [SIC 2011]) was selected for independent analysis due to a relatively sharp increase in concentration in recent years. The methodology chosen was similar to previous studies. Total factor productivity increased 2.4 percent per year, and labor productivity increased 3.3 percent per year for meatpacking plants over the 1958–82 period. Concentration in meatpacking did not positively or negatively affect total factor productivity or labor productivity over the 25-year study period.

Nonparametric procedures are used to compare technological change in SIC 2011, meatpacking, and SIC 2015, poultry slaughter and processing. There has been a greater increase in total factor productivity in poultry than in the red meats. Evidence also suggests recent differences in the bias of this technological change, with production changes being labor using in poultry and biased towards greater efficiency in the use of live animal inputs in meatpacking.

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Productivity-Concentration Relationship in The U.S. Meatpacking Industry

Technological Change in Meat and Poultry-Packing and Processing

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2 results

Productivity-Concentration Relationship in The U.S. Meatpacking Industry

Technological Change in Meat and Poultry-Packing and Processing