Do you remember the period several months ago, there were meat shortages at many grocery stores. There were many factors in play which made this happen but, for approximately the last 19 months or so there has been a huge emphasis on finding a quality local vegetables and meats. This has lead to a sustained challenge to the local food system in many areas.
When the worldwide Covid-19 shutdown started, the impact
that it had on food production and distribution equated to only a short 100
days which separated the announcement by China to the WHO that ‘a unique virus’
was causing hospitalization from a ‘respiratory like disease’ in January 2020. Then came warnings from the CEO of a major
food company and many others that the “food supply chain is breaking and cannot
keep up” in April.
The uncertainty and the unpredictability of this announcement
was a shock to both supply and demand scenarios causing a dramatic upturn in
demand and consumer stockpiling followed by decreased demand with the shutdown.
Agricultural producers were impacted by large negative demands by packers and
large positive demands by retailers, low retail meat supply and high livestock
supply. Many questioned, “What do I do
with the livestock ready for harvest?”
Many, many people have touted the strategy of improving
supply chain resilience through altering the current supply chain configuration.
Many locals have proposed or initiated efforts
to increase local and regional food systems, or ‘shorten the supply chain’ with
smaller less specialized systems. Economies of scale have developed large
centralized packing industries that have evolved because superior savings in
cost per unit savings in mechanization, processing, labor and shipping. Many of these efficiencies can result in a 35%-
40 % reduction in per-head processing costs.
So, will there be enough smaller, mid to medium sized plants
to effectively make up this shortfall? Not at this point with existing
infrastructure. Small plants generally
have aging facilities, severe labor challenges, lack economies of scale, have
scenario’s like dealing with offal disposal and others which cause increases in
cost per unit processed. Add on the paperwork
requirements for HACCP, custom vs USDA inspected and sanitation which are major
obstacles. Animal welfare and care are concerns
are hard to address by small packers.
Can new Small to Mid-Size Meat Processing Facilities Replace
Lost Beef Packing Capacity? I would
suggest that: No, smaller to mid-size packers cannot make up lost capacity due
to loss of capacity to large plants over the last 50 years, but yes they can
meet critical needs of consumers for local food and play an important role in
the meat supply chain as a service to Farmers Markets, CSA’s and local
livestock producers and communities.
However, remember that each of these small processors generates
income that is reinvested in the local communities through taxes, employees, services,
farm businesses, banks, and many other ways.
One small example is that local packers have secured harvest capacity
for 4-H/FFa youth market livestock projects which provide youth education and
experience on animal husbandry, nutrition, financial management, marketing,
leadership, responsibility and other attributes while meeting local food needs
and providing a potential stimulus to the community.
You may want to remember same of these thoughts when looking
for your next career or buying your next steak or taking a stance on your areas
next zoning decision. The success of these small local packers depends on how sustainable
the demand by consumers is for locally produced food sources and the consistency
of community and political to support small local and regional packers.
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