USDA to Fund Meat Processor Expansion

Friday, June 30, 2023

Fifteen businesses in 17 states were awarded $115 million to help expand independent meat and poultry processing capacity, USDA said in an announcement on Thursday.

Back in November 2022, USDA announced $223 million in grants and loans also to expand meat and poultry processing. According to USDA, about $357 million has been spent on loans and grants by the Biden administration in an attempt to grow meatpacking competition.

In the latest round, USDA is providing five awards totaling $38 million through the Meat and Poultry Processing Expansion Program to help independent processors in five states. USDA is also providing 10 awards totaling $77 million in the Meat and Poultry Intermediary Lending Program in 12 states.

In addition, the USDA's National Institute of Food and Agriculture is awarding $4.5 million to community and technical colleges in seven states through the Meat and Poultry Processing Agricultural Workforce Training program.

"While American farmers and ranchers have been responding to the demand to produce more, their communities have struggled to see their share of the benefits," U.S. Secretary of Agriculture Tom Vilsack said in a news release.

"Under the leadership of the Biden-Harris administration, USDA is committed to championing meat and poultry processers, increasing competition and lowering costs for working families."

The focus on meatpacking competition stems from supply chain problems that hit livestock producers and consumers during the peak of the COVID-19 lockdowns.

President Joe Biden started in 2022 meeting with producers and laying out his administration's plan to invest as much as $1 billion to expand competition in the meatpacking industry.

Among the fund recipients is Montana West Economic Development in Montana, that received $15 million to support meat and poultry processing and slaughterhouse operations in Flathead Valley.

In Michigan, three businesses will use a $2 million award to help construct and equip a meat- and poultry-processing and retail facility.

Source: dtnpf.com