The Meat Institute released a new national economic study detailing the far-reaching impact of the meat and poultry industry on the U.S. economy.
According to the analysis conducted by Decision Innovation Solutions, meat and poultry processors are expected to contribute $57.3 billion in value added to the U.S. economy in 2025, while directly supporting nearly 584,000 jobs and generating more than $40.6 billion in labor income.
Meat Institute President and CEO Julie Anna Potts said the report underscores the industry’s essential role nationwide.
“The meat and poultry industry is a critical and growing part of the U.S. economy, and one that has outsized importance to rural economies,” Potts said. “Our member companies are often the biggest employers in their rural communities, and their impact goes beyond jobs. They invest in their communities with generous donations of food and with financial and other irreplaceable contributions to local infrastructure like housing, community spaces, schools, and childcare.”
The study also found the industry generates $311 billion in total sales and pays $12.5 billion in local, state and federal taxes. When indirect and induced effects are included across supporting industries such as livestock production, animal feed manufacturing, grain and oilseed farming, transportation and equipment manufacturing, the study shows the industry’s national footprint is even larger. In total, meat and poultry processing contribute $347.7 billion in value added and support more than 3.2 million jobs across the U.S.
Labor income tied to the whole supply chain reaches $205.3 billion, and total sales across all related sectors exceed $911 billion. Tax revenue generated from these activities amounts to $77 billion. According to the study, rising global and domestic demand for protein will continue to fuel economic activity and strengthen the industry’s long-term importance to U.S. communities.
Top states
The U.S. slaughters approximately 129 million hogs, 30 million cattle, 9 billion broilers and 200 million turkeys per year. Nebraska ranks as the top cattle slaughter state, slaughtering 6.8 million commercial cattle, not including dairy or calves. Kansas and Texas round out the top three cattle slaughter states, processing more than 6.3 million and 5.4 million head, respectively. Iowa ranks as the top hog slaughter state, slaughtering 40.5 million head. Georgia ranks as the top broiler slaughter state, slaughtering 1.3 billion broilers. Minnesota ranks as the top turkey slaughter state, slaughtering 36.8 million turkeys per year.
The report provides a state-by-state analysis that highlights where the industry has the most significant economic impact. Texas leads all states in output contributions from meat and poultry processing, at $95.2 billion. Nebraska follows with $70.3 billion, while Iowa ranks third with $63.2 billion. Georgia and North Carolina round out the top five.
Value-added contributions mirror these rankings. Texas again leads with $39.5 billion, followed by Nebraska at $27.2 billion, Iowa at $24.8 billion, Georgia at $19.9 billion and North Carolina at $19.1 billion. The report notes that 37 states receive more than $1 billion in value-added benefits from the processing sector alone.
Livestock slaughter, processing
The study highlights the industry’s contribution from livestock slaughter and found it generates $149.7 billion in total value added in the U.S. Nebraska, Texas, Iowa, Kansas and Minnesota lead the nation in this category.
Livestock slaughter supports approximately 1.5 million U.S. jobs. Texas generates the most employment with more than 274,000 jobs, followed by Iowa with 148,416 jobs, Nebraska with 146,450 jobs, Kansas with 94,518 jobs and Missouri with 72,296 jobs.
Labor income tied to livestock slaughter totals $88.5 billion nationally, with Iowa contributing the most at $12.1 billion. Nebraska follows at $11.3 billion, then Texas at $10.2 billion.
Overall output from livestock slaughter exceeds $372.8 billion. Nebraska, Texas and Iowa together account for nearly 40% of that total.
The study also details the impact of meat processing, which adds $86.3 billion in value nationwide. Texas, Illinois, California, Wisconsin and Ohio lead the country in value-added contributions.
Nationally, meat processing contributes $53.1 billion in labor income and $227.9 billion in total output. Texas again ranks first in total output with $21.9 billion, followed by Illinois at $19.6 billion, California at $14.9 billion, Wisconsin at $14.2 billion and Iowa at $13.3 billion.
Methodology
This study is an economic contribution study that measures the meat and poultry processing industry’s current role in local, state and national economies, rather than estimating the effects of a new or departing business, as an economic impact study would.
To conduct this analysis, researchers used a combination of Impact Analysis for Planning (IMPLAN) and Microsoft Excel. IMPLAN is an input-output modeling system that evaluates industry relationships and economic activity using datasets updated annually from sources such as the Bureau of Labor Statistics, the Bureau of Economic Analysis, the Census Bureau and the USDA. The study relied on the 2023 IMPLAN data package, the most current dataset available, and applied IMPLAN’s inflation factors to project all dollar-based values forward to 2025. — Charles Wallace, WLJ contributing editor
