In the space of less than a year, Smithfield has purchased Carroll Foods, and announced its intention to purchase both Murphy Family Farms and Tyson's Pork Group. Smithfield is the largest producer and largest processor of pork. Smithfield's 48 plants processed 20 percent of the nation's hogs last year. As a result, Smithfield would have little need to buy animals in the open market at competitive prices. The attached chart shows the largest hog producers in the United States, and how that level has increased during the past five years.
Concentration is high throughout the livestock sectors.
Four of every five beef cattle are slaughtered by the four largest firms. Three of every four sheep are processed by the four largest firms. Three of every five hogs are slaughtered by the four largest firms. A table from the Heffernan concentration study is attached. Agricultural in-put suppliers are also consolidating at a rapid pace.