USDA unveils plan to help build small meat processing plants

USDA unveils plan to help build small meat processing plants.

The federal government promised Friday to spend $500 million to encourage the construction of smaller meat processing plants located closer to farmers who raise chickens, pigs and cows with the goal of diversifying an industry now largely run by a small number of large corporations.

Last year, the coronavirus pandemic shut down significant portions of the nation's meat processing capacity when the virus spread quickly among workers at processing plants.

It prompted a discussion about the dangers of a highly consolidated meat production industry in which processing takes place in a few large-scale plants owned by a handful of the largest meat producing corporations.

It will provide grants, loans, and technical assistance to help build new meat and poultry processing facilities.

Vilsack said the USDA also plans to initiate a new rule that will make it easier for farmers to sue companies they contract with over unfair, discriminatory or deceptive practices, and will tighten the definition of what it means for meat to be labeled a "Product of USA" to exclude animals that have been raised in other countries but processed in the United States.

The North American Meat Institute, a trade group representing 95% of United States output of meat and poultry products, rejected some of the assertions made about industry consolidation.

https://www.kcci.com/article/usda-unveils-plan-to-help-build-small-meat-processing-plants/36988827#