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The Monopoly on Meat

Updated: Jan 14

Is the lack of local processing capacity the next big threat to family farmers?


By Danielle Endvick | Wisconsin Farmers Union Communications Director



Optimism around direct marketing meat and building up the local food scene has taken a hit over the past year as a struggle around meat processing capacity sweeps across the state. Wisconsin Farmers Union has heard rumblings from members throughout the state about struggles to secure processing appointments.


The need for more meat processing infrastructure was identified as a Special Order of Business at the WFU convention in January 2020, as, even before the COVID-19 pandemic, members were experiencing a bottleneck in processing. The issue was exacerbated as COVID-19 led to the closure of large packing plants, diverting some animals to mom-and-pop butcher shops, backing up conventional livestock markets, and even leading to the euthanization of hundreds of thousands of hogs.


Local meat processing is crucial for family farms who sell processed meat directly to consumers or through food co-ops and other retail venues. This allows farmers to set their own price rather than having to sell animals through unpredictable conventional markets; it’s an important pathway to ensuring a future for family farms in Wisconsin.


The lack of processing capacity is a stumbling block that also hinders farmers from growing to meet consumer demand.


On a national level, meat processing has become increasingly vertically integrated, with four companies controlling a majority of U.S. meat processing. Fifty meat plants slaughter and process 98 percent of the national meat supply — investing in processing is an investment in the security of our food supply.


True to the Farmers Union triangle, WFU is taking a three-pronged approach to this issue, tackling it through education, legislation, and cooperation:


EDUCATION

The WFU staff has been exploring the challenges and opportunities around meat processing in the state and invites members to be a part of the discussion with a series of Winter Meat-ings. Farmers, processors, and other stakeholders have been joining in to learn more and consider creative solutions.


Upcoming events will delve into the topics of mobile slaughtering and on-farm solutions, cooperative and community efforts, state and federal policy, labor struggles, and creative marketing approaches.


On a December webinar hosted by WFU, Brandon Clare of J.M. Watkins Meats in Plum City shared his perspective as a processor in rural Wisconsin. His business has grown immensely in the seven years that he has owned it, but a lack of skilled and willing workers is a struggle point.


"The biggest problem we have is the labor side of things," Clare said. "This is pretty labor intensive work … it’s hard to find people who want to do that sort of work."


Recognizing the need for skilled butchers in the state, WFU offered scholarships for fall 2020 for the Artisanal Modern Meat Butchery program at Madison Technical College. We continue to seek out ways to encourage the next generation of butchers.


Many small-town Wisconsin processors are working in outdated buildings, often in areas where a town has sprawled around them and stifles the opportunity growth, Clare noted. "Freezer space is limited here, because we're in town ... it's limited space for expansion."


Like many processors in the state, he's booking processing dates over a year out. He notes, "2022 is probably 85 percent filled for us."


One thing most processors and farmers can agree on is a need for consistency.

"Right now, the biggest support we need is farmers' patience," Clare said. "For us, the consistent work is by far the best scenario, because we know what we're going to be doing." He encouraged farmers to get to know their processors and work to get on as regular of a processing schedule as possible.


"We need consistency," agreed Brodhead farmer Jen Reimer. "We have had to go to a couple different places to get processed but they have different recipes, labeling situations, packaging."


Such variations in product may not meet customers' expectations and can cut into profits.

Dunn County Farmers Union member Caleb Langworthy has also run into frustrations, noting it can be hard to bounce around to different processors who may not specialize in certain species. "We tried another local processor for lamb and they cut the rack into individual ribs, mixed them in with lamb chops and labeled them all chops," Langworthy said. "We had to eat that lamb ourselves and apologize to the customer who thought they had a lamb coming."


Trying to schedule processing dates a year or more in advance comes with its struggles, added Reimer, who markets grass-fed beef, hogs, sheep, and poultry.


"We've been booking into 2022 and just today had an issue with lamb dates," she said. "I had two lambs I would have liked to have let grow for a while longer, but I don't have dates in a couple of months, so we had to take them in smaller. It's not the end of the world, but a bit of a loss in profit and quality."


Colfax farmer Ken Schmitt markets his cattle mostly on the conventional market, partly because of the time commitment involved with direct marketing and coordinating lots of processing dates. "In the past we've had trouble and ended up going quite a distance from home to get them butchered," he notes.


"What we're hearing all over is the biggest problem is labor," Schmitt says. "A lot of these small town butchers would welcome another processor or two in town; it's just too much for them to keep up with."


COOPERATION

Cooperatives and community investment have a role to play in strengthening this weak link in local food chains. When WFU was approached by a group of Farmers Union members about an opportunity to collaborate on reopening a shuttered meat processing facility in Vernon County, we recognized the value of taking a collaborative approach. WFU was among eight investors who committed $200,000 to the venture, which opened in August as Nordik Meats.


Mount Horeb farmer Jess Bernstein is among farmers who have benefited from Nordik opening and expanding options for regional processing.


"I couldn’t get processing dates until I heard about Nordik, then got a date a few weeks away," notes Bernstein.


She is among a growing group of farmers who would support mobile or on-farm slaughtering options.


With Nordik's success, WFU was recently able to sell its shares back to the other investors, while turning a profit. The WFU board will be considering additional opportunities for investing in processing infrastructure.


WFU also has met with the Wisconsin Economic Development Corporation (WEDC), Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), UW-Extension, and the UW College of Agricultural and Life Sciences (CALS) to discuss meat processing infrastructure, and we will continue to seek opportunities to partner on creative solutions.


New approaches can also be found in other states. Montana Farmers Union recently secured funds to start a cooperative mobile slaughtering business and to develop the first college curriculum in the United States to teach meat processing from harvest to retail.


Minnesota Farmers Union has been advocating around meat processing, too, and the Minnesota Department of Agriculture (MDA) has provided resources for producers and small-scale processors and has expedited approvals for new ‘equal to’ state-inspected plants, moving them up from ‘Custom Exempt,’ and fast-tracking grant funding to increase slaughter capacity.


LEGISLATION

As we look to improve the situation unfolding around meat processing in the state, we must recognize that tied into this issue is a history of monopolization in the meat industry, which has consolidated livestock markets and processing options. WFU believes the federal government should be investigating antitrust in the meat industry and seeking to level the playing field for farmers.


Existing local processors need an injection of resources to meet growing demand.

State efforts have focused on short-term solutions to the processing bottleneck caused by the pandemic; this is important but we also need to focus on building resilient processing infrastructure for the long term.


Learn more and RSVP for upcoming events at www.wisconsinfarmersunion.com/processing.



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