The U.S. Department of Agriculture (USDA) has recently awarded $35 million in grants aimed at enhancing meat and poultry processing capabilities across the country. This funding will support 15 processing facilities in 12 states, with the goal of strengthening competition in the marketplace and providing farmers and ranchers with better opportunities. According to Agriculture Secretary Tom Vilsack, these investments will not only benefit producers but also improve local food availability and help bring down grocery costs for consumers.
Vilsack highlighted how the COVID-19 pandemic exposed vulnerabilities in the food supply chain, resulting in higher costs for consumers and limited access to essential products. Producers, especially those in the meat and poultry sectors, faced significant challenges, including market disruptions and pricing issues. These factors further underscored the long-standing problem of market concentration, particularly in industries such as meat and poultry, where a few large corporations dominate the landscape.
In response to these concerns, President Biden issued an executive order to enhance competition in the food and agriculture sectors, prompting USDA to roll out initiatives like the Meat and Poultry Processing Expansion Program (MPPEP). Since the program’s launch in 2022, it has been supported by the American Rescue Plan, with the USDA investing billions of dollars to encourage a more competitive processing landscape. The most recent $35 million in grants marks the final funding round under the MPPEP.
To date, the MPPEP has allocated $325 million to support 74 projects nationwide, significantly increasing the country’s processing capacity. According to USDA data, these investments have added the capacity to process over 800,000 cattle, 14,000 hogs, 23 million chickens, and 5 million turkeys annually. As more of these projects come online, those numbers are expected to grow even further.
One such project is Vermont Livestock Slaughter and Processing Company, operated by Carl Cushing. Cushing’s small facility, which employs just 12 people, faced the challenge of expanding to meet growing demand. While he needed to increase capacity, shutting down operations for a full year to rebuild the facility would have been impossible without losing business. However, with the help of the MPPEP grant, Cushing was able to continue operations while expanding his facility, allowing him to keep his promises to local farmers.
Cushing explained how critical the grant was in helping his business grow without causing disruption for his customers. “We made commitments to process animals for farmers, and we couldn’t break those promises because it takes years to bring them to market,” he said. “Shutting down for a year would have been a major setback for our customers. This grant was crucial in allowing us to keep things running while expanding, and now we’re ready for significant growth.”
The new facility will allow Cushing’s operation to double its output, and new equipment will help his customers become more competitive by offering better packaging and labeling options. This is just one example of how the USDA’s efforts to bolster small and independent processors are creating better market opportunities for local producers.
Vilsack reiterated the Biden-Harris administration’s commitment to fostering a sustainable agricultural vision that prioritizes small producers and rural communities. Expanding competition in the food and agriculture sectors, particularly in meat processing, is a key part of this effort, ensuring that small businesses have access to better markets while helping lower costs for consumers.
