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Econometric assessment of the effects of COVID-19 outbreaks on U.S. meat production and plant utilization with plant-level data

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  • Cooper, Joseph
  • Breneman, Vincent
  • Ma, Meilin
  • Lusk, Jayson L.
  • Maples, Joshua G.
  • Arita, Shawn

Abstract

This paper quantifies the impact of the COVID-19 disruption on U.S. meatpacking production. We employ a confidential plant-level meatpacking plant data set from USDA that gives daily livestock (cattle, swine, broilers) slaughter by individual firms and their individual plants. We found a larger underutilization rate of processing capacity for larger-sized beef and pork plants during the peak of plant slowdowns in April-May 2020, while no such relationship was found for broiler plants. In our panel analysis of beef packing plants, we found that higher COVID-19 infection rates in a county were associated with greater plant disruptions, but that plants appear to have been able to adjust relatively quickly to these disruptions. Our empirical analysis suggests a beef plant distribution with fewer large plants could have meant smaller shocks to production during the initial surge of COVID-19 disruptions. However, beef plant size was significantly less important to maximizing utilization of processing capacity after the initial surge.

Suggested Citation

  • Cooper, Joseph & Breneman, Vincent & Ma, Meilin & Lusk, Jayson L. & Maples, Joshua G. & Arita, Shawn, 2023. "Econometric assessment of the effects of COVID-19 outbreaks on U.S. meat production and plant utilization with plant-level data," Food Policy, Elsevier, vol. 119(C).
    • Handle: RePEc:eee:jfpoli:v:119:y:2023:i:c:s0306919223001203
    DOI: 10.1016/j.foodpol.2023.102522
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    References listed on IDEAS

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    1. Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
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