USDA Awards Final $325 Million in Meat and Poultry Processing Grants
The USDA has officially closed out its Meat and Poultry Processing Expansion Program (MPPEP) by awarding the final grants, totaling $35 million, to 15 processors across 12 states.
Over the past two years, the MPPEP has provided more than $325 million to 74 facilities across the country, to increase independent meat and poultry processing capacity.
Expansion Projects Boosting Local Processing
The latest grants under the MPPEP include several significant projects:
- America’s Heartland Packing in St. Louis, Missouri, received $10 million. This new beef packing plant, set to begin operations next year, will process up to 624,000 cattle annually, creating 1,363 jobs.
- Rocky Mountain Prime LLC in Idaho secured $5.24 million. The startup will process up to 100 head of beef and 500 sheep per day, focusing on “value-added, source-verified livestock.”
- Damian’s Craft Meats in southeastern Michigan received $4.17 million. This project will offer fee-for-service processing to local livestock producers, with the funding supporting land acquisition and startup costs.
- Natural State Processing in Arkansas was awarded $3.77 million to build and equip a facility that will double its current poultry processing capacity, serving chicken, turkeys, and ducks across eight states.
- Palindromes in Missouri will use its $3 million grant to increase poultry processing volume by 570,000 birds annually.
- Old-Salt Meat Co., a cooperative in Montana, received $1.39 million to establish a USDA-inspected facility, expand cold storage, and increase the number of cooperative producers.
Here are the full details on all the grants.
Expanding Nationwide Capacity
In addition to these newly awarded grants, previous projects funded by the MPPEP have increased processing capacity by over 800,000 cattle, 14,000 hogs, 23 million chickens, and 5 million turkeys annually, creating around 1,200 new jobs.
Agriculture Secretary Tom Vilsack highlighted the broader impact of these investments during a press call, explaining that the USDA has invested over $1.4 billion in 462 processing-related activities.
This includes loan guarantees for 51 additional processing projects and support for 75 smaller-scale programs.
Vilsack also addressed concerns about whether larger companies in the beef, pork, or poultry sectors could buy processors out. He assured that grant agreements contain “claw-back provisions” to address potential buyouts by the “big four” processors.
Success Stories from Previous Grant Recipients
Previous grant recipients shared how the program has benefited their businesses. Zach Fine, CEO of Holly Poultry in Baltimore, Maryland, said the grant helped his company break into new retail markets with their “One Chicken” brand, easing bottlenecks and expanding packaging capabilities.
Walter Schweitzer, president of the Montana Farmers Union, discussed the success of the Montana Premium Processing Cooperative, which received a $292,000 grant in 2022.
This cooperative, formed by 60 local producers, has expanded its processing capacity and secured USDA inspection with the help of the grant. “This investment made the difference for more than 70 producers,” Schweitzer said.
Addressing Future Challenges
As meat processing capacity grows, so does the demand for inspectors. Vilsack noted that Congress determines funding for state-level inspectors and emphasized the USDA’s ongoing request for additional resources to meet inspection needs.
In conclusion, the USDA’s MPPEP has successfully boosted independent meat and poultry processing capacity across the country, with substantial investments aimed at reducing bottlenecks, increasing jobs, and supporting local producers.
These projects are expected to continue benefiting the meat industry, especially smaller and independent processors.
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