Meat processing plant survival: The role of plant and regional characteristics

Abstract

AbstractFederal 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.