Meat sticker shock hits as the labor shortage continues
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[December 11, 2021]
By Zeta Cross
(The Center Square) – Prices for prime cuts of
meat are up by as much as 25% with farmers and consumers taking the hit.
Tom Eikman, owner of Eikman’s Processing in Seward, Illinois, a
small-sized, third-generation meat processor, said that a shortage of
skilled meat handlers and rising costs are plaguing the industry.
“We need those individuals that can take a front quarter of a beef and
can break that down into ribeyes and chuck roasts and ground beef. We’ve
been constantly trying to find that labor source and striking out,”
Eikman said.
Eikman has a theory that many of the longtime guys who did the skilled
meat processing jobs retired early because of the pandemic. Workers make
$18 an hour at Amazon. Some are not keen on standing on their feet in
icy facilities, lifting 70-pound meat carcasses for less money.
The solution to the labor shortage problem in the meat
industry is not simple, Eikman said. He hopes community colleges will
teach meat science – not just to people seeking management level jobs.
Frustrated employers are also looking to Mexico for blue collar workers,
hoping that the federal government will expand work visa opportunities.
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Eikman said he expects high meat prices to continue into next year.
Because of big time consolidation, most of the meat in Illinois
stores comes from four giant meat processing conglomerates.
Mid-sized meat processors who used to provide competition have all
been absorbed by the big four.
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Big Agriculture dictates the meat prices, Eikman explained. His
processing plant could undercut them in the short term and sell
steaks below their market rates. However, word would quickly get out
and Eikman would run out of the inventory.
So his hands are tied. He has no choice but to fall in line and
charge market rates, he argued.
If there were eight giant meat processing conglomerates rather than
just four, the situation might be a little better for farmers and
consumers, Eikman said. In Southern Illinois, Saline River
Processors is setting up a large meat processing plant with the
power to compete with the big four. The company hopes to be up and
running in the fall of 2022.
“It’s become more economical to buy half a beef and put it in the
freezer at home,” Eikman said. “Then the hard part: There is no
labor to do it. So we are in a continual circle.” |