USDA Targets Small Meat Processing Capacity Shortages Nationwide

USDA says limited processing capacity can force some ranchers to haul cattle long distances.

WASHINGTON, D.C. (RFD News) — The U.S. Department of Agriculture (USDA) is targeting shortages in small meat processing capacity as ranchers in some areas face long trips to get cattle processed.

USDA Under Secretary for Food Safety Dr. Mindy Brashears says about 80 percent of U.S. beef processing capacity is concentrated among four major processors.

Brashears says another 15 percent of capacity is held by other large processors, leaving only about 5 percent in small and very small plants. Some producers may drive one or two hours for processing, while others travel much farther when nearby capacity is unavailable.

“This is unfortunate because we have local ranchers who might want to have a branded product or even just to have their beef processed for their family and bring it home,” Brashears said.

USDA wants ranchers to have greater access to inspected plants so they can process cattle for family use or sell branded products through legal market channels. Brashears says the goal is to create more opportunities for producers while maintaining federal oversight.

“We want to create avenues where this can occur again. It’s still under inspection. It’s still safe, and we’re not compromising that,” Brashears said.

Brashears says some paperwork, data-entry requirements, and other operating requirements can create hurdles for small and very small processors. USDA is looking at ways to help processors navigate those requirements and reduce outdated requirements without compromising food safety standards.

“We want to be able to put programs in place to help them navigate that better or even reduce some of the outdated requirements without compromising those food safety standards,” Brashears said.

USDA is also making funding available to help processors meet inspection requirements, including facility renovations, process changes, and new equipment.

Farm-Level Takeaway: More small processing capacity could give ranchers shorter hauling distances and additional options for locally marketed beef.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Improved water levels are allowing more vessels and deeper loads through the Panama Canal.
Foreign subsidies, tariffs, and market controls continue to shape global sugar competition facing U.S. growers.
Drought Harvest Livestock Pressures Shape State Agriculture Nationwide
Weekly ethanol output fell to its lowest level since January as inventories continued to decline.
Winning bids averaged about $1.3 million as demand for 2027 grain rail capacity increased.
Rising Treasury yields could keep farm borrowing costs elevated heading into 2027.