Monday, October 2, 2017

Are bigger food companies better than small food companies?

Is it possible that there are companies that are big on making food products, yet they aren't as good quality as smaller food products? If so, there are a few companies that claims they are mass in product, but also possible the quality is good or not as good, but there is room for everyone if the food product company is huge, as they spend large amounts of money. But watch if there is GMOs or Non-GMOs. Smaller companies could be in family quality which is also good. Some meat processing plants includes 24% of the shipments in 2015, also includes livestock, poultry slaughters, processing, and rendering components. Consolidation happens in many food processing plants where the plant size increases sharply and mergers has led to fewer to larger companies. Concentration raises doubts about the marketing power of sales of their products and about effects of it's efficiency. 2002-2012, the concentration ratio of soft-drink (soda) industry has increased from 52% to 68%, though in 2012, there were 11% fewer soft-drink processing plants, as there was 14% fewer in 2002. However, in 2012, small plants accounted for 68% of all plants, but only 4.5% of the total value of shipments. The four largest steer and heifer slaughter firms accounted for 85% of total slaughter in 2015, however at that time, a factor influencing consolidation was the decline in per capital consumption of soft drinks in the US, because of that, the soda sales dropped for the 11th consecutive year in 2015, reaching a 30-year low. In 2009, 80% became prior to the slaughterhouse benefits in the remains. In 2015, these plants accounted for 16% of the value shipments from all US manufacturing plants. There are many food and beverage processing plants in the US, over 30,000 owned by 25,800 companies in 2012, according to the comprehensive data in 2012. The plants employed more than 1.5 million workers in 2015. The meat processing industry employed the largest percentage of food and beverage workers in 2015, followed by bakery, and fruits and vegetables.


Source of this blog: https://www.ers.usda.gov/topics/food-markets-prices/processing-marketing/manufacturing.aspx

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