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On the economics of meat processing, livestock queuing, and worker safety

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  • Bruno Larue

Abstract

Meat processing plants use inputs in fixed proportions, but these proportions vary with plant size. Shocks to the supply of labor and livestock induce allocative inefficiency, output reductions, and higher unit costs of production. Both labor conflicts and the pandemic caused long labor shortages resulting in unused capacity and large livestock queues. Industry concentration and vertical integration can mitigate some of these problems by internalizing queuing costs and by reallocating workers across plants. Daily shocks make plants operate with either too many workers or too many live animals. Larger plants choose to be labor‐constrained more frequently, creating a trade‐off between wages and safety for workers. Les usines de transformation de viande utilisent leurs intrants en proportion fixes, mais ces proportions varient avec la taille des usines. Des chocs sur l'offre de travail et l'offre d'animaux entrainent de l'inefficacité allocative, des baisses de production et des coûts unitaires plus élevés. Les conflits de travail et la pandémie ont engendré des diminutions subites et prolongées de main d’œuvre et d'importants retards dans l'abattage. La concentration et l'intégration verticale de l'industrie peuvent aider en internalisant les coûts occasionnés par les retards et en relocalisant temporairement la main d’œuvre entre usines. Les chocs sur l'offre de travail et d'animaux forcent les usines à opérer souvent avec trop ou pas assez d'animaux par travailleur. Les plus grandes usines choisissent d’être limitées par l'offre de travail plus souvent, ce qui crée un compromis entre salaires et sécurité pour les travailleurs.

Suggested Citation

  • Bruno Larue, 2022. "On the economics of meat processing, livestock queuing, and worker safety," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 63-72, March.
  • Handle: RePEc:bla:canjag:v:70:y:2022:i:1:p:63-72
    DOI: 10.1111/cjag.12303
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    References listed on IDEAS

    as
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