The Production-Consumption Chain

The production-consumption chain refers to the cycle of supply and demand within which meatpacking companies function, and the integral set of processes linking farmers and growers in the US with domestic and international consumers. It situates itself within the larger food chain involving the breeding of livestock, grain and water consumption by livestock, the consumption of livestock as meat, and the waste generated from the intervening processes.

Global Overview

World meat consumption is highly concentrated. On its Web site, the World Watch Institute notes that by the late 90s, the United States and China contain 25 percent of the world's population and combine to consume 35 percent of the world's beef, over half of the world's poultry, and 65 percent of the world's pork. If Brazil and the European Union are included, this group consumes over 60 percent of the world's beef, over 70 percent of the world's poultry, and over 80 percent of the world's pork[1]. In terms of individual nations, the US is the largest consumer of meat in the world; the Economic Research Service of the United States Department of Agriculture (USDA) estimates that per capita meat consumption in the US is going to average at 219 lbs. per person by 2016.[2]

World meat consumption has surged more than fivefold since 1950, growing from 44 million tons to 211 million tons in 1997[3]. The rising population of livestock contributes to a range of problems – expansion of rangeland and strain on land resources, strain on water resources especially in developing countries, and the inefficient use of grain as livestock feed (rather than directly by humans) in a world where hunger is still rampant[4]. It also contributes to a rising plethora of lifestyle diseases that become a strain on healthcare resources, especially in developed nations.

US Production-consumption patterns over time

Beef

In the years 2009-11, US producers raise on an average 97-99 million heads of beef cattle per year, and this is projected to rise up to 102 million head of cattle by 2016[5]. Industry sources cite an estimated 800,000 farms where cattle are raised[6]. Per capita consumption for beef went up from 44 lbs. to 65 lbs. between 1950 and 1995, averaging in the mid 60s in the 2000s[7].

Pork

Industry sources indicate that there are an estimated 70,000 hog farms in the US[8]. However, pork consumption has declined in the time period from 1995 (65 lbs. per capita) to 2007 (51 lbs.) per capita[9] and is expected to continue to decline in the 2008-2010 period due to rising feed prices; consumption is expected to rise after that in response to better prices[10]. Unlike the case of US-grown beef cattle, Canada is the major supplier for live swine imported into the United States.

Poultry

Compared to beef and pork, the rate of increase in consumption was greatest for poultry, from 24 lbs. (of Chicken and Turkey combined) in 1950 to 105 lbs. in 2007[11]. Poultry prices remain lower than red meat in the 2000s. However, the USDA predicts a reduction in production gains and thus in per capita consumption for several years in the period up to 2016, after which there are projected increases in consumption as the system adjusts to these changes.[12]

The rate of increase of poultry consumption in the last few decades coincides with the increasing trend of contracting poultry farming to ‘grow-out’ farmers through the 80s and 90s – i.e. growers who do not own the poultry that they raise, and who are provided the chicks, feed, medication etc. by the corporate processor and provide the facilities, labor and care required to raise the animals before they are collected by the processor. Even the premises are often bought with the help of substantial loans, and thus the grower has little financial or contractual control.[13]

Ecological and human costs

Vast ecosystems have been affected and altered, and massive resources devoted to support livestock populations. The Worldwide Watch Institute notes, “The ecological footprint of world meat production includes forest destruction for ranching in Central and South America, suppression of native predators and competitors in the United States, and the introduction of invasive forage species virtually everywhere commercial ranching exists”.[14]

Human costs include the inefficient use of grain as livestock feed for consumers even in the face of world hunger[15]. In the context of the meatpacking process, it could include the effects of the high line speed (i.e. moving speed of the disassembly line) that is directly related to the escalating consumption-production chain.[16]

 


 

References:

1. Worldwide Watch Institute, “United States Leads World Meat Stampede”

2. United States Department of Agriculture Economic Research Service, “USDA Agricultural Projections to 2016”

3. Worldwide Watch Institute, “United States Leads World Meat Stampede”

4. Ibid.

5. United States Department of Agriculture Economic Research Service, “USDA Agricultural Projections to 2016”

6. Best Food Nation

7. The Humane Society of the United States: Factory Farming Campaign, “Farm Animal Statistics: Meat Consumption”

8. Best Food Nation

9. The Humane Society of the United States: Factory Farming Campaign, “Farm Animal Statistics: Meat Consumption”

10. United States Department of Agriculture Economic Research Service, “USDA Agricultural Projections to 2016”

11. Ibid.

12. Ibid.

13. Whittaker, W. (2006). Labor Practices in the Meat Packing and Poultry Processing Industry: An Overview. CRS report for Congress, p. 4

14. Worldwide Watch Institute, “United States Leads World Meat Stampede”

15. Ibid.

16. Human Rights Watch, “Blood, Sweat and Fear” , section IV

 

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