Source: Chris Scott, MEATINGPLACE, 6/14/16


The impact of the domestic meat and poultry industry on the U.S. economy exceeded $1 trillion for the first time, according to the latest study commissioned by the North American Meat Institute (NAMI).

The figure — which represents 5.6 percent of the nation’s gross domestic product (GDP) — was calculated using data from all types of meat and poultry producers, wholesalers and retailers as part of the “Meat Fuels America” research project conducted by New York-based John Dunham & Associates. It included six research criteria covering economic impact studies and involved direct industry players (processors, for example), indirect participants (equipment manufacturers, among others) and induced industry participants (like the diner across the street from a major plant). The results cover 2014, the latest year for which data were available.

Highlights of the study, as outlined in a conference call with industry analysts and reporters, include:
• The industry has a value of about $1.02 trillion
• Is larger than the U.S. trucking industry, the high-end fast food industry and the legal industry
• Is almost as large as the U.S. government (excluding the Defense Dept.)
• Meat and poultry manufacturers, wholesalers and retailers employ nearly 2 million Americans 
• Industry workers earned $71.6 billion in annual wages and benefits
• The industry paid more than $108 billion in direct federal, state and local taxes, with consumers paying $3.26 billion in state taxes on meat and poultry products

The NAMI study also shines a spotlight on the economic impact the meat and poultry industry has on rural areas of the country, with the top three congressional districts in terms of total meat and poultry output being in Nebraska. The second three districts are in Arkansas, home of major poultry producers, the report added. California, Texas and Illinois were the top three states in terms of direct meat and poultry output, with California accounting for more than $32 billion in annual output, the report said.

Additional information on the study — and a state-by-state breakout of meat and poultry output — is available here.