Food Industry Mergers and Acquisitions Lead to Higher Labor Productivity
by Michael Ollinger
, Sang V. Nguyen, Donald Blayney, William Chambers, and Kenneth Nelson
Economic Research Report No. (ERR-27) 39 pp, October 2006
Processing plants in eight major food industries were highly productive before being acquired and they significantly improved their labor productivity afterward, Economic Research Service and U.S. Census Bureau researchers found in their analysis of Census data. The industries are meat packing, meat processing, poultry slaughtering and processing, cheese making, fluid milk processing, flour milling, feed processing, and oilseed crushing. The analysis suggests that mergers and acquisitions contributed to the general improvement in labor productivity from 1972-92, echoing an earlier ERS study. Labor productivity is defined as output per worker.
Keywords: Mergers and acquisitions, labor productivity, structural change, food processing, consolidation, grain processing, meat slaughter, dairy processing
In this publication...
- Report summary, 102 kb
- Abstract, Acknowledgments, Contents, and Summary, 175 kb
- Introduction, 120 kb
- Merger and Acquisition Theories, 151 kb
- Production Plants as Appropriate Units of Analysis, 118 kb
- Two Census Bureau Datasets, 349 kb
- Acquired Plants Have Higher Initial Labor Productivity Than Nonacquired Plants, 131 kb
- Most Acquired Plants Have Higher Labor Productivity Growth, 137 kb
- Conclusion: Firms Buy Efficient Plants and Improve Their Labor Productivity, 109 kb
- References, 112 kb
- Appendix, 93 kb
- Entire Report, 280 kb
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