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The
money aims to increase competition and stability in the meat
industry - which is dominated by a few players - as part of a
broader effort by the Biden administration to boost competition
in the U.S. economy and rein in soaring inflation.
The COVID-19 pandemic revealed cracks in the industry as
outbreaks temporarily shut massive slaughterhouses early in
2020, pushing up meat prices. Some farmers had to cull livestock
that could not be processed due to the closures.
The grants for 21 projects are part of $150 million the USDA set
aside for the first phase of an attempt to expand processing
capacity, Vilsack said. The agency said it will soon begin
taking applications for a new phase to deploy an additional $225
million.
The program aims to increase capacity in beef and pork plants by
over 500,000 head a year and in poultry plants by over 34
million birds a year, Vilsack said. He expects that projects
will create more than 11,000 jobs, not including construction
jobs.
Meat processors have struggled to attract plant workers due to
the tight labor market and employees' concerns about safety.
Companies seeking USDA grants had to demonstrate they could
attract workers, Vilsack said.
The USDA is also providing $75 million in loan guarantees to
four meat and poultry projects and $75 million to not-for-profit
programs that can provide low-interest financing to the sector,
Vilsack said.
(Reporting by Tom Polansek, editing by Deepa Babington)
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