SIC 2013 Sausages and Other Prepared Meat Products

Encyclopedia of American Industries | 2005 | Copyright

SIC 2013
SAUSAGES AND OTHER PREPARED MEAT PRODUCTS

Establishments in this category are primarily engaged in manufacturing sausages, cured meats, smoked meats, canned meats, frozen meats and other prepared meats and meat specialties, from purchased carcasses and other materials. Products include bologna, bacon, corned beef, frankfurters (except poultry), headcheese, luncheon meat, pigs' feet, sandwich spreads, stew, pastrami, and hams (except poultry). Prepared meat plants operated by packinghouses as separate establishments are also included in this industry.

Establishments primarily engaged in canning or otherwise processing poultry, rabbits, and other small game are classified in SIC 2015: Poultry Slaughtering and Processing. Establishments primarily engaged in canning meat for baby food are classified in SIC 2032: Canned Specialties. Establishments primarily engaged in the cutting up and resale of purchased fresh carcasses, for the trade, are classified in SIC 5147: Meats and Meat Products, a wholesale trade industry.

NAICS Code(s)

311612 (Meat Processed from Carcasses)

Industry Snapshot

In 2000 U.S. companies in this industry shipped products worth $25 billion; the value of shipments for all meat products was $118 billion. Retail value of beef consumed in the late 1990s exceeded $51 billion, according to the U.S. Department of Agriculture (USDA). Imports of red meat in the late 1990s were valued at $3.2 billion, while red meat exports were worth an estimated $4.4 billion. Prepared meats also found a niche among the salty snack category, evinced by sales increases in this market.

In the late 1990s the red meat industry, which included meat-packing plants and establishments that produced processed pork and beef products, accounted for only 58 percent of the entire meat industry, which included poultry and poultry products, compared to 80 percent a decade earlier. The consensus among analysts is that this shifting market share is due to increasing consumer demand for healthier foods. The shift does not appear to be away from meat, according to USDA data, as red meat production hit an all-time high of 45.1 million pounds in the late 1990s. The prepared food industry continues to formulate new products to meet consumer demands for lighter, leaner, and easier to prepare foods. In the late 1990s the industry introduced no less than 728 new products in the processed meat and poultry category.

Per capita consumption of red meat continued to increase throughout the late 1990s, and studies done by both the USDA and the American Meat Institute (AMI) show that 99 percent of Americans eat meat, and 94 percent eat red meat. Total meat, poultry, and fish consumption has risen by 15 pounds per person over the past decade. The USDA estimates that the average American ate 124 pounds of red meat and 93.6 pounds of poultry in the late 1990s.

Organization and Structure

Prepared meat products are marketed to supermarkets and wholesale clubs, and oftentimes the "store brand" purchased was produced by a...

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