USDA invests $110 million to expand independent meat and poultry processing facilities

The Agriculture Department is investing $110 million to support the expansion of small meat and poultry processors, aiming to boost competition and reduce food costs. As part of this investment, $83 million in grants will be distributed to two dozen companies through the USDA’s Meat and Poultry Expansion Program, which funds the construction of new processing facilities. Additionally, $26.9 million in grants will go to 33 projects via the USDA’s Local Meat Capacity program, which also supports expansion projects within the meat and poultry sectors.

This funding, sourced from the Biden administration’s American Rescue Plan, will aid numerous processors in building new facilities or expanding existing ones. To date, the administration has allocated over $700 million to infrastructure projects that enhance meat and poultry capacity.

“USDA is working to give farmers and ranchers a fairer chance to compete in the marketplace, which will increase local food options and lower costs for American families,” said Agriculture Secretary Tom Vilsack in a statement.

The grants range from a few thousand dollars to $10 million, depending on the project.

For example, Simla Frozen Food Locker, a meat processor in rural Colorado, is receiving $450,000 to build a facility across the street from an existing plant. This project will serve 160 local producers and create four full-time jobs.

In another instance, a processor in Hamlet, North Carolina, is receiving $10 million to construct a facility that processes ostrich, emu, water buffalo, and alpaca. This project is expected to serve 37 producers and create 54 full-time jobs.