Impacts of the COVID-19 Crisis on the Performance of the U.S. Meat Processing Industry

Presenter: Shiwei Xu

Research Category: Interdisciplinary Topics, Centers and Institutes
College: College of Professional Studies
Major(s): Commerce & Economic Developmnt
Graduation Date: 2021
Additional Authors: Hui Xu

External shocks such as the financial crisis have influenced the meat processing industry in the United States. Particularly, the recent outbreak of a novel coronavirus (COVID-19) wrought havoc on the value chain of the meat industry from processing to distribution to retail sales, which created a new challenge for meat processing companies. In this study, the impact of coronavirus on the meat industry is analyzed by assessing the operational performance of those companies through data envelopment analysis, based on multiple inputs and outputs, and by comparing their financial performance indicators before and after the pandemic. Then, a multiple regression analysis is conducted to examine the statistical relationships between the performance and indicators for the stock price and COVID-19 cases in the industry. The results demonstrate that the performance of most meat processing companies has declined since the pandemic occurred. Drawing on the analysis results, we conclude that the COVID-19 crisis deteriorates the performance of the meat processing industry and the adverse situation may not recover in the near future.