The 2005/2006 Market Outlook for the U.S. Process Meats Industry (With Long-Term Forecasts Through 2014)

TABLE OF CONTENTS

SECTION I - OVERVIEW OF THE U.S. PROCESSED MEAT INDUSTRY

Analysis:

Overview

First BSE Case in the U.S.

Foodborne Illnesses Still a Problem

By the Numbers

The Competition

Foreign Markets

SECTION II - THE U.S. MARKET FOR PROCESSED MEAT

Analysis:

The Overall Market

Sausage

Processed Pork

Canned Meats

Other Processed Meats

Abbreviated Product Terms

Tables:

U.S. Manufacturers  Sales of Processed Meats:

Total

By Place of Production

By Type

Product Mix

U.S. Manufacturers  Sales of Sausage:

Total

By Place of Production

Value, by Type

Quantity, by Type

Average Price, by Type

Per Capita Consumption, by Type

Value, by Type and Place of Production

Quantity, by Type and Place of Production

Average Price, by Type and Place of Production

U.S. Manufacturers  Sales of Processed Pork:

Total

By Place of Production

Value, by Type

Quantity, by Type

Average Price, by Type

Value, by Type and Place of Production

Quantity, by Type and Place of Production

Average Price, by Type and Place of Production

U.S. Manufacturers  Sales of Canned Meats:

Total

Value, by Place of Production

Quantity, by Place of Production

Average Price, by Place of Production

Per Capita Consumption

U.S. Manufacturers  Sales of Other Processed Meats:

Total

Value, by Type

U.S. Manufacturers  Sales of Sausage Casings

Private-Label Sales of Processed Meats, by Type

Retail Sales of Processed Canned and Specialty Meats, by Type

Top Five Retail Frankfurter Brands

Top Five Retail Refrigerated Bacon Brands

Top Five Retail Breakfast Meat Brands

Top Five Retail Frozen Sausage Brands

Top Five Retail Refrigerated Dinner Sausage Brands

Top Five Retail Sliced Refrigerated Lunch Meat Brands

SECTION III - NEW PRODUCT INTRODUCTIONS IN THE PROCESSED MEAT INDUSTRY

Analysis:

Overview

New Beef Products

New Luncheon Meats

New Pork Products

Tables:

Selected New Beef Products Introduced

Selected New Luncheon Meat Products Introduced

Selected New Pork, Ham, and Related Products Introduced

SECTION IV - ADVERTISING AND PROMOTIONAL TRENDS

Analysis:

Overview

Leading Advertisers

"SPAM" on Broadway

Tables:

Media Expenditures by the Processed Meat Industry

Leading Advertisers in the Processed Meat Industry

Leading Advertised Brands in the Processed Meat Industry

Media Expenditures for Processed Meats, by Company and Brand

SECTION V - THE SUPPLY SIDE

Analysis:

Overview

A Challenge in the Hog Supply

The First BSE Case in the U.S. Sparks Concern

Feed Prices

Pricing Trends for Finished Products

Tables:

Number of Hog Operations in the U.S

Number of Hog and Pig Farms, by State

Number of Hogs and Pigs in the U.S

Number of Hog Farms in Leading States, by Size of Hog Inventories

Number of Sow Farrowings and Pigs Weaned Per Litter

Hog and Pig Inventory, by State

Number of Hogs Slaughtered in the U.S.

Estimated Daily Capacity of Selected U.S. Pork Slaughtering Firms

Number of Cattle and Calves in the U.S

Number of Cattle and Calves Slaughtered in the U.S.

Livestock Marketings, by Type and by State

U.S. Meat Production, by Type

Pork Supply, Utilization, and Per Capita Consumption

Beef Supply, Utilization, and Per Capita Consumption

Feed Price Ratios for Livestock

U.S. Corn Supply

Average Prices Received by Farmers for Feed Grains, by Type

Producer Price Trends:

Meat Processed from Carcasses

Processed Pork

Sausage and Similar Products:

Total

By Type, for Meat Processors

Other Processed Meats, for Meat Processors

Consumer Price Trends:

All Foods

Meat, Poultry, and Seafood, by Type

Processed Pork Products, by Type

Average U.S. Retail Prices for Meat and Poultry, by Type

SECTION VI - FACTORS AFFECTING DEMAND FOR PROCESSED MEATS

Analysis:

Overview

The Low-Carb Phenomenon

Economic Factors

Consumer Spending

Per Capita Consumption

Health Concerns

Tables:

U.S. Gross Domestic Product

U.S. Gross Private Domestic Investment

U.S. Disposable Personal Income

U.S. Per Capita Disposable Personal Income

U.S. Personal Consumption Expenditures

U.S. Per Capita Personal Consumption Expenditures

Consumer Confidence Index

Personal Consumption Expenditures on Meat

Consumer Expenditures on Food, At Home vs. Away from Home

U.S. Per Capita Consumption of Red Meat and Poultry, by Type

U.S. Per Capita Consumption of Red Meat, by Type

Average Annual U.S. Expenditures on Meat, Poultry, and Seafood, by Type

Average Annual U.S. Expenditures on Processed Meat, by Type

Average Annual U.S. Spending on Processed Meat, by Selected

Demographic Characteristics and by Type:

Beef:

Total

Ground Beef

Roasts:

Total

Chuck Roasts

Round Roasts

Other Roasts

Steak:

Total

Round Steak

Sirloin Steak

Other Steak

Other Beef

Pork:

Total

Bacon

Pork Chops

Ham:

Total

Not Canned

Canned

Sausage

Other Pork

Other Meats:

Total

Frankfurters

Luncheon Meats:

Total

Bologna, Liverwurst, and Salami

Other Luncheon Meats

Lamb, Organ Meats, and Other Meats

U.S. Resident Population Trends and Projections

U.S. Population Trends and Projections, by Age Group

Age Distribution of the U.S. Population

U.S. Population and Household Trends and Projections

U.S. Resident Population Projections, by Region

U.S. Resident Population Projections, by State

Distribution of the U.S. Population, by State

SECTION VII - DISTRIBUTION CHANNELS IN THE PROCESSED MEAT INDUSTRY

Analysis:

Overview

Chain Restaurants

Retail Outlets

Tables:

Number of Selected Retail Establishments

Total Sales of Selected Retail Establishments

Percentage of Supermarkets with Service Delis

Online Retail Spending on Groceries

Multi-Unit Restaurants:

Sales, by Segment

Distribution of Sales, by Segment

Sales Growth, by Segment

Number of Units, by Segment

Distribution of Units, by Segment

Unit Growth, by Segment

Average Annual Sales Per Unit, by Segment

Growth in Average Annual Sales Per Unit, by Segment

Per Capita Spending at U.S. Multi-Unit Restaurants

Top 20 Restaurant Chains

Top 20 Burger Restaurants

Top 20 Sandwich Chain Restaurants

U.S. Manufacturers  Sales of Frozen Pizza

Top 10 Frozen Pizza Brands

Graph: Convenience Store Growth Analysis

Graph: Total Convenience Store Sales

Sales of Food Prepared On-Site at Convenience Stores, by Type

Sandwich Sales at Convenience Stores

Financial Profile of Wholesalers of Meat and Meat Products

Financial Profile of Meat Markets

SECTION VIII - U.S. FOREIGN TRADE OF PROCESSED MEAT

Analysis:

Overview

U.S. Exports of Processed Meat

U.S. Imports of Processed Meat

BSE Cases Impact Trade

Tables:

Foreign Exchange Rates

Fixed Euro Conversion Rates

U.S. Apparent Consumption of Processed Meat

Top 20 U.S. Export Destinations for Processed Meat

Dollar Market Shares of the Top 20 U.S. Export Destinations for

Processed Meat

Graph: Leading U.S. Export Destinations for Processed Meat

U.S. Exports of Processed Meat, by Type

U.S. Exports of Processed Meat, by Country of Destination and by Type:

Processed Meat of Bovine Animals:

Fresh or Chilled:

Boneless

Bone-In

Frozen:

Boneless

Bone-In

Prepared Meals Containing Cereals or Vegetables

Salted, Smoked, Dried, or in Brine

Prepared or Preserved Meat or Meat Offal, Not Elsewhere

Specified or Included

Processed Meat of Swine:

Bacon

Boned and Cooked, Packed in Airtight Containers:

Hams and Cuts

Shoulders and Cuts

Other, Not Containing Cereals or Vegetables

Bone-In Hams, Shoulders, and Cuts, Fresh or Chilled

Frozen:

Bone-In Hams, Shoulders, and Cuts

Other

Prepared or Preserved:

Hams and Cuts Containing Cereals or Vegetables

Shoulders and Cuts

Not Elsewhere Specified or Included, Not Containing Cereals or

Vegetables

Hams and Cuts, Not Elsewhere Specified or Included

Other, Including Mixtures

Salted, Smoked, Dried, or in Brine:

Bone-In Hams, Shoulders, and Cuts

Streaky Bellies and Cuts

Not Elsewhere Specified or Included

Other Meat and Edible Meat Offal; Salted, Smoked, Dried, or in Brine

Top 20 U.S. Import Sources for Processed Meat

Dollar Market Shares of the Top 20 U.S. Import Sources for Processed

Meat

Graph: Leading U.S. Import Sources for Processed Meat

U.S. Imports of Processed Meat, by Type

U.S. Imports of Processed Meat, by Country of Origin and by Type:

Processed Meat of Bovine Animals:

Prepared or Preserved:

Not Containing Cereals or Vegetables, Packed in Airtight

Containers

Corned Beef, Packed in Airtight Containers

Not Elsewhere Specified or Included

Food Preparations Based on Beef Sausage and Similar Products:

Canned

Other, Packed in Airtight Containers

Other, Except in Airtight Containers

Prepared Meals Containing Cereals or Vegetables

Other, Not Containing Cereals or Vegetables

Cured or Pickled, Not Containing Cereals or Vegetables

Boneless, Not Elsewhere Specified or Included, Frozen

Salted, Smoked, Dried, or in Brine

Processed Meat of Swine:

Bacon

Canadian-Style Bacon

Boned and Cooked, Packed in Airtight Containers:

Hams and Cuts

Shoulders and Cuts

Not Containing Cereals or Vegetables

Fresh or Chilled:

Bone-In Hams and Cuts

Bone-In Shoulders and Cuts

Spareribs

Not Elsewhere Specified or Included

Other Prepared or Preserved:

Hams and Cuts

Shoulders and Cuts

Not Containing Cereals or Vegetables

Not Elsewhere Specified or Included

Frozen:

Bone-In Hams, Shoulders, and Cuts

Other

Salted, Smoked, Dried, or in Brine:

Bone-In Hams and Cuts

Bone-In Shoulders and Cuts

Streaky Bellies and Cuts

Not Elsewhere Specified or Included

Other Food Preparations Based on Pork Sausage and Similar

Products

Hog Guts, Bladders, and Stomachs Prepared for Use as Sausage

Casings

Collagen Sausage Casings

Prepared or Preserved Mixtures of Pork and Beef

Food Preparations Based on Sausage and Similar Products of Meat, Meat Offal, or Blood:

Canned

Except Canned

Prepared or Preserved Animal Meat, Including Preparations of Blood of Any Animal:

Canned

Not Elsewhere Specified or Included

Other Meat and Edible Meat Offal; Salted, Smoked, Dried, or in Brine

SECTION IX - STRUCTURE OF THE U.S. PROCESSED MEAT INDUSTRY

Analysis:

Overview

Operating Structure

Employment Trends

Capital Expenditures

Explanation of Terms

Tables:

The U.S. Processed Meat Industry:

Operating Structure

Gross Operating Margin

Value Added by Manufacture

Vertical Integration Index

Employment Structure

Total Labor Costs

Average Hourly Earnings

Cost of Living Index for Production Workers

Labor Productivity

Indexes of Real Labor Productivity

New Capital Expenditures

Plant vs. Equipment Expenditures

Ending Inventories

Number of U.S. Meatpacking Plants, by Employment Size Class

Number of Employees, Payroll, and Number of Establishments in the U

Meatpacking Industry, by State

Number of Meatpacking Plants, by Employment Size and by State

Top 20 Meatpackers and Processors:

Sales, Employment, and Number of Plants

Financial Profile of Suppliers of Meat Processed from Carcasses:

Total

Sorted by Sales

Sorted by Assets

The Plant Manager s Workbook:

How to Use This Section

Gathering Your Data

Developing Your Ratios

How Does Your Plant Stack Up?

SECTION X - COMPANY PROFILES

Introduction

Altria Group, Inc.:

Overview

Kraft

Meat Products

Outlook

Financial Summary and Analysis

Beef Products, Inc.:

Overview

The AMS School Lunch Program

Outlook

Boar s Head Provisions Co., Inc.:

Overview

Meat Products

Presidential Donor

Bob Evans Farms, Inc.:

Overview

Restaurants

Manufacturing and Distribution

News

Outlook

Financial Summary and Analysis

Bridgford Foods Corporation:

Overview

Products

Distribution

Outlook

Financial Summary and Analysis

Cargill, Incorporated:

Overview

Meat Solutions

News

Outlook

Chicago Meat Authority, Inc.:

Overview

Products

Honor from American Institute of Baking

Hormel Foods Corporation:

Overview

Products

Manufacturing

New Product Introductions

"SPAM" by Any Other Name

Outlook

Financial Summary and Analysis

Johnsonville Sausage LLC:

Overview

Manufacturing

Marketing Strategies

Performance Food Group:

Overview

Broadline Segment

Customized Segment

Fresh-Cut Segment

News

Financial Summary and Analysis

Sara Lee Corporation:

Overview

Sara Lee Meats

New Product

Outlook

Financial Summary and Analysis

Graph: Food and Beverage Sales, by Category

Seaboard Corporation:

Overview

Pork Segment

News

Outlook

Financial Summary and Analysis

Smithfield Foods, Inc.:

Overview

Pork Segment

Beef Segment

HPG Segment

Other Segment

News

Outlook

Financial Summary and Analysis

Swift & Company:

Overview

Irradiated Beef

Swift Trace

Outlook

Tyson Foods, Inc.:

Overview

Beef Segment

Pork Segment

Distribution

Outlook

Financial Summary and Analysis

Graph: Sales, by Business Segment.

Washington Beef, LLC:

Overview

Asian Beef Contract

Agri Beef Co

SECTION XI - COMPETING MARKETS

Analysis:

Overview

Poultry

Seafood

Meat Alternatives

Tables:

U.S. Manufacturers  Sales of Poultry and Small Game

U.S. Manufacturers  Sales of Fresh or Frozen Prepared Fish and Other Seafood

U.S. Manufacturers  Sales of Canned or Cured Fish and Other Seafood Average Annual U.S. Spending on Competing Products, by Selected Demographic Characteristics and by Type:

Poultry:

Total

Fresh and Frozen Chicken

Fresh and Frozen Whole Chicken

Fresh and Frozen Chicken Parts

Other Poultry

Fish and Seafood:

Total

Canned Fish and Seafood

Fresh Fish and Shellfish

Frozen Fish and Shellfish

Selected New Poultry Products Introduced

Selected New Seafood Products Introduced

APPENDIX I - BOVINE SPONGIFORM ENCEPHALOPATHY

Analysis:

Overview

Timeline

APPENDIX II - FOODBORNE ILLNESSES

Analysis:

Overview

Escherichia coli (E. coli)

Salmonellosis

Food Irradiation

APPENDIX III - SELECTED PROCESSED MEAT PRODUCT RECALLS: 2004

APPENDIX IV - INDUSTRY DIRECTORY

Introduction

Directory of U.S. Meat Producers and Meatpacking Plants.