A new economic study shows the meat and poultry processing industry contributes $57.3 billion to the U.S. economy and provides 584,000 jobs. The entire meat and poultry industry, including livestock production, animal feed, equipment manufacturing, transportation and more contributes $347.7 billion in value to the nation, supporting 3.2 million jobs.
“The meat and poultry industry is a critical and growing part of the U.S. economy, and one that has outsized importance to rural economies,” Meat Institute president and CEO Julie Anna Potts said in a release. “Our member companies are often the biggest employers in their rural communities, and their impact goes beyond jobs. In addition to the taxes they pay, they invest in their communities with generous donations of food and make financial and other irreplaceable contributions to local infrastructure like housing, community spaces, schools, and childcare.”
The Meat Institute commissioned Decision Innovation Solutions to conduct the economic contribution study.
Through indirect and induced effects, the meat and poultry processing industry generates significant economic activity in other industries, such as livestock and poultry production, animal feed manufacturing, grain and oilseed production, truck and rail transportation, equipment manufacturing, and many more, the study notes. After accounting for these indirect and induced effects, the total economic contribution of the U.S. meat and poultry processing industry is:
- More than 3.2 million jobs
- $347.7 billion in value added
- $205.3 billion in labor income
- $911.7 billion in total sales (output)
- $77.0 billion in local, state, and federal taxes
A State by State Breakdown
The economic contribution of the meat and poultry processing industry was also estimated for each state and federal congressional district as a part of the study.
“While the meat and poultry processing industry drives some economic activity in every state and nearly every district, some regions of the U.S. consistently rank at or near the top of the reported economic measures,” the report says. “Texas, Nebraska, Iowa, Georgia, North Carolina, Kansas, California, and Arkansas are among the top-ranking states. Nebraska-3, Iowa-4, Texas-13, Kansas-1, Minnesota-1, and Arkansas-3 are among the congressional districts with the greatest amount of economic activity resulting from the meat and poultry processing industry.”
Meat slaughter and processing occurs in every state. The map above contains a state-by-state breakdown of cattle, hog and poultry slaughter and processing facilities. Note that the count of facilities by state includes those that process and/or slaughter single or multiple species; however, each facility is counted only once, ensuring no duplication. Minnesota ranks as the top state with slaughter and processing facilities at 293 and Nevada has the fewest number of facilities at three. Many of these facilities are small or very small and are considered to slaughter and process multiple species, the study says. Larger facilities often only slaughter and/or process a single species and account for approximately 3% of facilities.
Meat processing facilities for pork, beef and poultry are located all throughout the U.S., positioning themselves in areas that can supply steady flows of livestock and poultry for slaughter and/or processing. Midwestern states like Iowa and Minnesota that slaughter large volumes of livestock and poultry annually have more facilities relative to other states, like Nevada, that slaughter significantly smaller volumes of livestock and poultry annually, and similarly, have very few facilities.
“America’s meat and poultry processing industry is an important driver of economic activity throughout the nation,” the study says. “Through sales to and purchases from a wide variety of industries, livestock and poultry processors contribute greatly to both their local economies as well as the national economy. Given the increasing national and worldwide demand for food broadly and protein specifically, it is expected that the meat and poultry processing industry will continue to contribute to the economic growth and wellbeing of the U.S.”
