According to a recent article in Meating Place, USDA grants to restructure meat production in the U. S. favored three states. According to the article, Iowa received 35 grants representing 10 percent of the 320 awarded but comprised 18 percent of the $262 million total. Cattlemen’s Heritage Beef Company, LLC, received $520 million for a new plant.
Missouri received 21 grants, totaling $4.5 million with Zimmerman Meats receiving $730,000 for a major expansion and compliance with federal inspection to facilitate interstate transport. Michigan received 16 grants totaling $7 million reflecting support of small operations that may have local benefits but certainly will not move the national needle to any extent. South Carolina received three grants with Prestage Farms of South Carolina receiving $25 million.
The current Administration under Secretary Tom Vilsack has attempted to shift the concentration of hog and beef packing from the four major companies to smaller packers. This policy was introduced partly in response to the transitory sharp fall in supply of red meat during the 2020 COVID outbreak that disproportionately impacted large plants. The initiative to support small packers is an expression of an inherent bias against large but highly efficient packing that allows economies of scale.