Chapter 25 - Processing
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Conception to Consumer
Part 2
The meat processing industry
• Characteristics
– competition for both
• purchase of animals
• sale of products
•
•
•
•
Perishable product - processed rapidly
Rapid turnover of product and $$
Sale of many by-products
Essential as it puts food into a usable form
Meat Industry Trends
• Slaughter plants fewer but larger
– 5200 in 1986 down to ~2600
– Processing plants (incl small ones) 6500
– 3 largest had sales > $34 B
– Only Federally inspected plants sell interstate
• 130 M head, 7.5 B birds inspected & processed/yr
2002 FARM BILL PROPOSAL
• Limits ownership by packers to 2 weeks
before slaughter
• Very controversial
• Amendment to US Farm Bill, would
have large impact if passed on
processors, meat industry
• UPDATE - legislation to ensure open
markets. (still pro’s and con’s)
Leading Companies (1999)
Vol of Sales in Meat & Poultry
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Conagra
IBP
Cargill
Tyson
Sara Lee
Smithfield
Omaha
S.D.
Minn. MN
AR
Chicago
VA
$12,916
$12,848
$ 9,000
$ 7,400
$ 4,300
$ 3,867
Leading Packers, 2002
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•
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ConAgra
Cargill (Excel)
Farmland Industries
Tyson Foods
• Smithfield is largest Pork
producer/processor
2004 update
• Smithfield bought farmland, Tyson
bought IBP
• Top US pork packers
Company
Smithfield
Tyson/IBP
Swift (ConAgra)
Cargill/Excel
Hormel
Market share
0.26
0.17
0.11
0.08
0.08
http://www.oligopolywatch.com/2003/12/28.html
http://www.ilfb.org/viewdocument.asp?did=3756
• Over 78% of beef consumed in the
United States in 2002 was slaughtered
and packed by five companies, and
over 60% originated from three
companies.
Top US Beef Packers
Thursday, Sept 05, 2002
http://www.ilfb.org/viewdocument.asp?did=3757
Top US Grocery Retailers
Ranked by Sales
Tuesday, September 03, 2002
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#1 Kroger Co., Cincinnatti, OH
#2 Albertson’s Inc., Boise, ID
#3 Safeway Inc., Pleasanton, CA
#4 Ahold USA Inc., Netherlands
#5 Wall-Mart, Bentonville, AR
http://www.ilfb.org/viewdocument.asp?did=3697
U.S. supermarket industry
Retailer
Wal-Mart
Kroger
Albertsons
Safeway
Stores
2,875
2,488
2,287
1,481
2002 results (Billions)
$54.00
$51.80
$35.60
$32.40
May 27, 2003, edition of the Wall Street Journal
from: http://www.oligopolywatch.com/2003/06/09.html
• Kroger
– Kroger, Ralphs, King Soopers, City Market,
Dillons, Smith’s, Fry’s, QFC, Owen’s, JayC,
Gerbes, Hilander, PayLess,Baker’s,
Kessel, Fred Meyer
• Albertson’s
– Albertsons, Jewel Osco, Sav-on, Acme
Markets
• Safeway Inc.
– Safeway, Carrs, Dominick’s, Genuardi’s,
Pavilions, TomThumb, Vons, Randalls,
Park ‘n Save Foods
• Ahold USA Inc.
– BI-LO, Stop and Shop, Giant, Tops
Markets, Brunos
• Wal-Mart Supercenters
Here are the transactions within the Big
Five that have taken place over the past
few years:
• Tyson Foods acquired IBP in 2002
• Excel/Cargill entered into a joint venture
in 2001 with Hormel to sell case-ready
beef; acquired Compack's meat
business in 2001
• Swift was (partially) spun off from
ConAgra in 2002
• Farmland Industries filed for Chapter 11
in 2002; in 2003, its; beef operations
were sold to US Premium Beef and its
pork operation was sold to Smithfield
• Smithfield has acquired Packerland
Holdings (formerly #5) and Moyer
Packing in 2002.
• All slaughtering procedures must be
conducted in humane manner.
– Rendered insensible via bolt gun, stunning,
or CO2
– Kosher methods require severing jugular
instead
Inspection
• Inspection is MANDATORY
Figure 25-4
The federal meat inspection stamps or marks applied to wholesale cuts or carcasses, packages of
processed poultry parts, or packages of processed meat items such as chili or wieners. The number
refers to the plant where the stamp was applied. (USDA)
Cunningham & Acker
Animal Science and Industry, Sixth
Edition
Copyright ©2001 by Prentice-Hall, Inc.
Upper Saddle River, New Jersey 07458 All rights
reserved.
Grading
• Grading is OPTIONAL
• USDA provides service to those who
request and pay for it.
Figure 25-5
USDA inspector (right) and plant production supervisor check federally inspected beef carcass. Note
also the grade stamps along the back and shoulder. (Oscar Mayer and Company)
Cunningham & Acker
Animal Science and Industry, Sixth
Edition
Copyright ©2001 by Prentice-Hall, Inc.
Upper Saddle River, New Jersey 07458 All rights
reserved.
Figure 25-6
The federal meat quality grading stamp for beef or lamb, top left; beef yield grade stamp, top right. For
poultry, both inspection and grade marks, bottom left and bottom right, may appear on a package or on
a wing tag. (USDA)
Cunningham & Acker
Animal Science and Industry, Sixth
Edition
Copyright ©2001 by Prentice-Hall, Inc.
Upper Saddle River, New Jersey 07458 All rights
reserved.
Additional Food Safety
• Meat inspection (mandatory)
• 1996 added testing for pathogens & new
procedures to reduce contamination
• FSIS
– procedures, plants
– salmonella testing, E. coli testing
• HACCP
– Hazard Analysis and Critical Control Points
– Costs $100 M/yr ($.001/lb), saves $1-4B
Cooling
• Cool rapidly and thoroughly
– Poultry in ice-water or air
– Beef, pork, lamb, 27 F (~24 hr)
– Beef require more time (30 hr +)
• some get ‘aged’
Other Regulations
• Additives control (FDA)
– GRAS list
– Prior sanctioned substances
• Labels
• Safe handling instructions
Aging & Tenderizing,
Curing & Smoking