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Economist says expansion will take time to improve competition in cattle industry

A livestock economist says the USDA’s recently announced $500 million in grants for small meat processors will help improve competition in the cattle industry. 

But, University of Missouri’s Scott Brown says it will take time. “It’s difficult for those smaller processing investments to offset some of the large plants that we have,” he says.  “It isn’t necessarily the fix that we need at the end of the day.    But it helps in terms of getting some of those new plants on board.”

He tells Brownfield, there is an opportunity to fill some niche markets and provide more support to local producers. “Many of us have seen consumers more interested in local products,” he says.  “That may be the real win here of value-added opportunity from some of these small processors to return more dollars back to producers.  I know that’s ultimately what a lot of these cattle producers would like to see.”

The USDA says the funds were made available through the American Rescue Plan in the form of grants and guaranteed loans.  The department also says they’ll see input from industry stakeholders on how best to build the program.  Funds are expected to be made available this fall.