"An effective way to increase industry resilience among smaller processors might be encouraging diversification and vertical integration. The success of smaller retail meat markets is likely contingent on local demand, however.7 Retail meat markets may not be successful in areas where demand for niche products is weak, or where incomes are not high enough to support sales of high-value-added products."
Not claiming to be an expert on this topic, but the work I have seen done by our group here at Penn State, in conjunction with the meat associations AMP and PAMP, have done a tremendous job in helping facilities become better at what they do - specifically diversifying products. Attending the PAMP Meat Judging contest over the past decade, I have seen a proliferation of different meat products, thanks in large part to the support these processors receive. So if I am the government giving money to support this industry, this is a good place to start.
Another factor touched upon is local demand, and creating local demand. How many of us frequent a local meat market? Personally, I love meat markets. But they are like hidden gems that most people are not aware.
But starting a meat establishments has many challenges - environmental, supply, and labor to name a few. But what we can do is to make sure we support the ones we have.
Journal of the Agricultural and Applied Economics Associationhttps://onlinelibrary.wiley.com/doi/full/10.1002/jaa2.55
Meat processing plant survival: The role of plant and regional characteristics
Catherine Isley, Sarah A. Low
First published: 26 April 2023 https://doi.org/10.1002/jaa2.55
Abstract
Federal and state governments are making major investments in expanded meat processor capacity and improved industry resilience. To improve decision-making, this research identifies characteristics related to the probability of meat processing plant survival using hazard analysis and establishment-level data on US meat processors (including beef, pork, goat, lamb and mutton, and large game processors) 1997–2020. We find plant survival is associated with both plant characteristics and local context, though specific factors related to survival vary with plant size and rurality. Smaller plants are less likely to survive than larger plants, and for smaller plants survival is most strongly related to business diversification. For larger plants, local context, including workforce variables, has the strongest relationship with survival. Our analysis shows little relationship between meat processing industry concentration and plant survival, though we find weak evidence of a positive relationship between industry concentration and large nonmetro plant survival.