In 2021 the current Administration and specifically the Secretary of Agriculture confirmed their intent to disrupt the structure of U.S. meat and poultry production. They oppose large corporate enterprises that have grown through efficiency and productivity. This includes integration in the case of broiler and turkey production and the concentration of red meat production from packing through distribution and marketing.
As a counter to the existing structure that has developed over a century, the Administration has attempted to develop a counter-industry through funding small regional plants using public funds to provide capital for expansion of facilities and installation of equipment.
The USDA Rural Development Program has made 59 awards amounting to $291 million under the Meat and Poultry Processing Expansion Program and the Local Meat Capacity Grant Program. Grants have ranged from $390,000 to $10 million with the intention of creating local opportunities for workers and livestock producers.
North State Processing LLC recently received $10 million to build a new plant in Hamlet, NC. to process cattle, ostrich, emu, water buffalo and alpaca. Cattle may be available, but justifying any plant on the other species appears highly speculative. Many of the projects are for startups with a heavy emphasis on tribal and underserved communities.
It is hoped that USDA is as adept at monitoring progress and accounting for funds provided as they are at distributing taxpayer dollars.
Given that the Administration intends to inject an additional $110 million “to strengthen the supply chain and increase independent meat and poultry processing capacity” the Department should be enjoined from additional grants until it can account for the $290 million assigned to date. As a corollary the USDA should explain how expenditures have altered the suppy of meat and poultry and reduced prices to consumers nationwide.