Gains in consumption have supported an increase in the number of U.S. poultry plants in decades past, but food demand and technology are driving a much more rapid shift toward consolidation in the U.S. meat industries. Consumers want products that are safe, easy to prepare, and offer improved nutrition and consistency. Meeting these demands and pursuing efforts to trim costs have led to widespread consolidation in meat processing, retail and livestock production. The poultry sector went through a period of consolidation in the 1990’s which in turn led to greater competition in the beef and pork sectors where companies focused on increasing capacity, however lower margin led to takeovers. Approximately 60% of U.S. chicken processing is controlled by five companies, five companies control 70% of the country’s pork processing, and four companies control 80% of the U.S.’s beef packing. This narrowing of the industry has pushed premiums to record highs as was shown by Tyson’s recent winning bid of $8.5 billion to acquire Hillshire Brands. To read further analysis about where future acquisitions will occur within the industry:
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