Industry Analysis & Industry Trends
While per capita meat consumption is expected to remain stagnant in the five years to 2016, economic woes before this period exacerbated consumption declines. In addition to broad trends related to consumer preference and disposable income, disease outbreaks have limited industry growth during specific years. Due to recovering consumer sentiment, population growth and strong export demand, meat-processing revenue is forecast to increase during the five years to 2021. Despite the stability of consumer demand for meat-based products, unpredictable weather conditions and disease outbreaks can cause volatility from year to year. To combat such volatility, operators will continue to vertically integrate, guaranteeing their supply.
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Industry Report - Industry Analysis Chapter
Operators in the Meat, Beef and Poultry Processing industry slaughter animals, process the carcasses and package the meat into products and byproducts. The industry also purifies and refines animal fat, bones and meat scraps. Products are sold to other food manufacturers, renderers, grocery and meat wholesalers and retail traders.
Despite average revenue growth of 1.4% per year expected during the five years to 2016, meat processors have experienced some turbulent times. Increases in feed prices caused the price of industry inputs (i.e. cattle, hogs and poultry) to rise during the early part of the period. Industry operators can partially pass on these costs to consumers, but in most cases, their profit margins also take a hit... purchase to read more