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USDA invests $110 million to boost meat and poultry processing capacity

The investment aims to increase processing capacity, create jobs and lower food costs.

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U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced substantial investments to strengthen American food supply chains, increase independent meat and poultry processing capacity, create new and better markets for producers and lower food costs. This effort is supported by nearly $110 million in funding from the American Rescue Plan through the Meat and Poultry Processing Expansion Program (MPPEP) and the Local Meat Capacity (Local MCap) Grant Program.

“The Biden-Harris Administration and USDA are advancing a sustainable vision of agriculture that prioritizes the needs of hardworking producers and small businesses and keeps rural communities strong,” said Secretary Vilsack. “Thanks to historic resources from President Biden’s American Rescue Plan, 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.”

Meat and Poultry Processing Expansion Program

USDA is partnering with the New Hampshire Community Loan Fund to provide over $83 million in grants to 24 independent processors across 15 states through the MPPEP. This funding will support the construction of new processing plants, create hundreds of jobs, and provide local producers with better business opportunities. Notable projects include:

  • Simla Frozen Food Locker Co. LLC in Colorado is receiving a $450,000 grant to build a new facility, expanding their processing capacity and creating four full-time jobs.
  • McRez Packing International LLC in New York will use a $390,000 grant to refurbish an industrial facility, expected to create 110 full-time jobs and serve up to 2,500 new producers.
  • North State Processing LLC in North Carolina is receiving $10 million to build a facility to process cattle, ostrich, emu, water buffalo, and alpaca, creating 54 full-time jobs.
  • NF Packing Inc. in Wisconsin is receiving $1.4 million to build and equip a new processing facility, expected to serve 75 producers and create 20 full-time jobs.

Local Meat Capacity Grant Program

USDA is awarding $26.9 million to 33 projects in 23 states through the Local MCap Grant Program, designed to expand processing within the meat and poultry industry. This program supports smaller-scale projects, aiming to increase local processing options and strengthen market potential for local producers. Examples of funded projects include:

  • White Oak Pastures in Georgia will use a grant to convert its poultry processing facility to also process lambs, goats, and hogs, expanding their capacity by 30%.
  • Nordik Meats in Wisconsin will use a grant to purchase new equipment to expand processing capacity, benefiting 50 local producers and increasing annual livestock processing by 100%.
  • Seven Hills Food Co. in Virginia will use a grant to make plant enhancements, add rendering capacity, and create new value-added products, supporting local producers in accessing larger markets.
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