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Poultry Processing


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Executive Summary

Brief Excerpt from Industry Overview Chapter:

The US poultry processing industry includes about 500 companies with combined annual revenue of $40 billion. Major companies include Perdue Incorporated, Pilgrim's Pride, and Tyson Foods. The industry is highly concentrated: the 50 largest companies account for more than 90 percent of revenue.

COMPETITIVE LANDSCAPE

Demand is driven by population growth 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 serving a limited geographical area or by producing a specialized product.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are fresh or frozen young chickens, fresh or frozen turkeys, cooked or smoked poultry, and other birds such as ducks, geese, and Cornish hens. Young chickens account for about 65 percent of industry revenue, processed meats 25 percent, and turkeys less than 10 percent.

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 5 pounds. The large producers use industrial techniques that have been developed to produce chicken products at the lowest possible cost. These involve large feeding operations - using chicken breeds that efficiently turn feed into meat - and large distribution systems that can rapidly put fresh chicken parts on supermarket shelves.

A typical chicken (or turkey) operation involves distinct steps. Chicks are produced from eggs laid by ...


Contents: Industry Overview
Quarterly Industry Update
Business Challenges
Trends AND Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Website and Media Links
Glossary of Acronyms




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