WASHINGTON D.C. – Federal legislation has been introduced to relieve major bottlenecks in the supply chain between small scale ranchers and consumers. The Strengthening Local Process Act would provide funding to expand capacity at small and mid-sized meat processing companies and build new similar sized plants.

Many small and mid-sized processors have realized a dramatic increase in business from people fearing meat shortages in the grocery stores caused by larger plants temporarily closing because of COVID-19 outbreaks. Many of the smaller scale processors, though, lack the resources needed to expand their operations.

The result has been longer waits for consumers wanting sides and quarters of meat processed and farms with a backlog of animals waiting to be accepted at plants without adequate capacity.

Joe Moore, executive vice president of the Indiana Beef Cattle Association, said small processors, from the rising popularity of locally grown foods, were already dealing with considerable bottlenecks made worse by the pandemic.

“Most local processors if you called one today and said I have a steer I would like to bring in, he would tell you about next August you might be able to get one in,” he said.

The legislation was presented by U.S. Reps. Chellie Pingree (D-Maine) and Jeff Fortenberry (R-Neb.).

The measure also includes funding to increase the number of inspectors that would be needed from having more beef processed at small and mid-sized operations.

The legislation calls for the federal share of costs for state inspection to increase from 50 percent to 65 percent to encourage more states to operate state inspection programs.

“It doesn’t really do any good to build plants and increase our capacity if we don’t have inspectors to inspect the product to make it available to the consumer,” Moore said.

The legislation would direct funds to small plants, universities and technical colleges to train additional workers that would be needed at the larger and new meat processing operations. Resources would also be provided to help small and very small plants obtain necessary certification.

“New markets are new opportunities. Small meat lockers are catalysts for economic activity. The Strengthening Local Processing Act will make it possible for these businesses to grow and expand,” said Johnathan Hladik, policy director for the Center for Rural Affairs.

Hladik also said the bill also invests in the next generation of small meat processors by offering grants to train small-plant operators and employees.

“This legislation reflects the priorities of farmers and business owners from across the nation,” he said.

Mike Boell, owner of the Oakland Meat Processing Plant in Nebraska, said the legislation would make it easier for operations like his to accommodate significant growth demand.

“Right now, regulatory and financial barriers are making it difficult for businesses like ours to take full advantage of this opportunity.  The Strengthening Local Processing Act is a step in the right direction,” he said.

Ben Meyer, co-owner of Revel Meat Company in Canby, Ore., said food security is another issue addressed by the legislation.

“As we have seen in the past year, relying on large consolidated meat processing facilities to dominate our domestic markets leave consumers at dangerous risk of losing access to safe, clean meat from the local ranchers who produce it,” he said.

The beef industry in Indiana consists primarily of calves being sent to states with more wide open spaces out west for finishing.

Moore said there are enough small ranchers serving customers wanting to fill up their freezers, though, for the legislation to have a measureable positive impact here. “These guys would love to sell more freezer beef. Problem is we just can’t get them in for processing,” he said.

Moore said his organization just received $4 million in federal money from the Coronavirus Aid, Relief and Economic Security (CARES) Act to help create more small meat processing plant capacity in the state.

He said the cost of a typical new moderately sized operation is about $2 million. “We need bigger facilities and we need a trained workforce. That’s going to be difficult. The money is wonderful but there are still some obstacles to overcome,” Moore said.