ABSTRACT

This chapter describes the activities of processors and distributors, and their implications for the livestock sector. Pork is higher in absolute terms because of the greater degree of processing, an activity that is classified as a wholesaling function. Among the specialty meat wholesalers and distributors, the general trend to fewer but larger firms is also evident. An additional performance component of the meat processing sector is the degree of regulation it is subject to. The information, while admittedly limited and dated, does suggest that the meat distribution sector is performing in a reasonably efficient and competitive manner. Measuring profits as a percentage of net worth, the specialty meat distribution sector earned 13.3 percent for firms with assets above $1 million compared to the aggregate of the meat packing industry of 11.7 percent in 1982. The great bulk of meat products move from the packer in fresh form to be sold as general, commodity-type products at supermarkets and restaurants of various type.