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  food processing

Food processors transform raw agricultural and marine products into intermediate foodstuffs and edible final products. ERS studies changes in the sector's organization, technology, and production costs, and examines how those changes affect farm prices, food prices, and product qualities.


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Through the 1970's, the higher wages paid by larger plants almost offset the cost advantages resulting from scale economies in technological advances. However, Consolidation in U.S. Meatpacking finds that the wage premium disappeared in the 1980's and technological change created greater scale economies, resulting in growing cost advantages and a greater share of market production for larger plants.

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updated: November 20, 2000

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