SARA LEE FOODS TAKES FLIGHT: AN ECONOMIC IMPACT ANALYSIS OF A TURKEY PLANT CLOSURE

Spencer Antonio Burrows, Laura Martin Cheney and Allan P. Rahn

Journal of Agribusiness, 2002, vol. 20, issue 2, 7

Abstract: In 1998, the Sara Lee Corporation implemented a corporate strategy of deverticalization. Bil Mar Foods, Inc., a subsidiary of Sara Lee responsible for the processing of packaged meat products, followed the strategy by shutting down its turkey slaughter facility in Zeeland, Michigan. As a consequence, turkey growers in Michigan were left with no viable outlet for live bird slaughter and the potential end of live bird production in the region. This study analyzes the economic impact associated with the cessation of live bird slaughter at the Bil Mar Foods plant. The economic consequences may be as high as an $81 million loss in total industry output, a $29 million loss in income, and a total employment loss of nearly 800 jobs. Faced with these economic consequences, turkey growers in the region joined forces to form a valued-added cooperative.

Keywords: Community/Rural/Urban Development; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2002
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/14720/files/20020147.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:14720

DOI: 10.22004/ag.econ.14720

Access Statistics for this article

More articles in Journal of Agribusiness from Agricultural Economics Association of Georgia Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().