Poultry Product Manufacturing

First Research, Inc.
October 27, 2014
10 Pages - SKU: FRRS5362722
Countries covered: United States

Poultry Product Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry slaughter and process poultry and small game. Major companies include US-based Perdue, Pilgrim's Pride (owned by Brazil-based JBS), Sanderson Farms, and Tyson Foods, as well as Copacol (Brazil) and Industrias Bachoco (Mexico).

World population growth and rising demand for protein drive global revenue for the poultry industry. Global output of poultry meat is about 100 million tons a year, according to the UN Food and Agriculture Organization. Countries in the Americas and Asia are top producers.

The US poultry product manufacturing industry includes about 300 companies with combined annual revenue of about $52 billion.

COMPETITIVE LANDSCAPE

Demand is driven by domestic meat consumption trends and export markets. The profitability of individual companies depends on efficient production and distribution. Big companies have economies of scale in production and distribution. Small companies can compete successfully by targeting regional markets or by producing specialized products. The US industry is highly concentrated: the 50 largest companies account for more than 90 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are fresh or frozen young chickens (about 60 percent of industry revenue) and processed poultry or meat products (about 25 percent). Other products include turkeys and birds such as ducks, geese, and Cornish hens.

Chickens grown for eating (rather than laying eggs) are called broilers. About 9 billion broilers are produced in the US each year; the average broiler weighs about 6 pounds. About 250 million turkeys are produced each year; the...



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