Measuring productivity provides a good indication of the economic efficiency of the food manufacturing industry, according to a report from the UDSA economic research service (ERS).
Productivity in US food manufacturing has been growing more slowly than US manufacturing overall. Between 1975 and 1997, US food processors averaged 0.19 percent per year in productivity gains while other manufacturing industries averaged 1.25 percent.
The ERS study concluded that less processed industries such as meat packing and fluid milk showed little productivity growth. Industries which rely on elaborate packaging and sophisticated processes, such as beverage and baking, had productivity gains of about 1 percent per year.