As several large meatpackers have increasingly been forced to temporarily shutter plants or scale back on services during the pandemic, small, independent slaughterhouses have enjoyed increasing demand. "But while the Trump administration threw its weight behind getting large meat plants back up and running, smaller companies have not enjoyed the same backing in terms of regulatory easing or financial aid," Ximena Bustillo reports for Politico.
As of 2018, there were about 4,000 small (under 500 employees) and very small (under 10 employees or $2.5 million in sales) meatpacking plants in the U.S. that the U.S. Department of Agriculture inspects. Many are in precarious financial shape because they operate on thin profit margins and have difficulty getting loans due to lack of collateral, Bustillo reports.
Many small processors say they were already seeing increased business in the pandemic, because of increasing consumer preference for buying locally raised meat, but say the boom is overwhelming their capacity and increasing their work backlog by months, Bustillo reports. Without help from Congress and the USDA, small meatpackers say the increased business will hurt more than it will help, because it will disrupt their long-term customers.
"As a result, lawmakers on Capitol Hill are urging more help for small processors. A recent letter from Republicans asks the Agriculture Department to reduce regulatory burdens that ban small plants from entering the market and limit competition to major producers resulting in the current bottleneck," Bustillo reports. "Several Democrats and Republicans have introduced bills in the House and Senate to provide aid to small plants, something advocates hope will be included in the next coronavirus relief package."
Large meatpacking plants in the U.S. and Canada are nearly back at capacity, but there's still a months-long backlog of animals awaiting slaughter and processing. Some states, like Maine and Montana, are stepping in with state-level financial aid.
As of 2018, there were about 4,000 small (under 500 employees) and very small (under 10 employees or $2.5 million in sales) meatpacking plants in the U.S. that the U.S. Department of Agriculture inspects. Many are in precarious financial shape because they operate on thin profit margins and have difficulty getting loans due to lack of collateral, Bustillo reports.
Many small processors say they were already seeing increased business in the pandemic, because of increasing consumer preference for buying locally raised meat, but say the boom is overwhelming their capacity and increasing their work backlog by months, Bustillo reports. Without help from Congress and the USDA, small meatpackers say the increased business will hurt more than it will help, because it will disrupt their long-term customers.
"As a result, lawmakers on Capitol Hill are urging more help for small processors. A recent letter from Republicans asks the Agriculture Department to reduce regulatory burdens that ban small plants from entering the market and limit competition to major producers resulting in the current bottleneck," Bustillo reports. "Several Democrats and Republicans have introduced bills in the House and Senate to provide aid to small plants, something advocates hope will be included in the next coronavirus relief package."
Large meatpacking plants in the U.S. and Canada are nearly back at capacity, but there's still a months-long backlog of animals awaiting slaughter and processing. Some states, like Maine and Montana, are stepping in with state-level financial aid.
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