The COVID-19 pandemic significantly impacted small meat processors in the upper Midwest. The unprecedented event led to business closures, workforce supply challenges, increased demand for meat processors’ services, and delays up and down the supply chain.
To better understand the ongoing resource gaps facing these businesses and to improve resiliency in this vital industry the Agricultural Utilization Research Institute (AURI) and the United States Department of Agriculture, Agricultural Marketing Service (USDA-AMS) recently published a Needs Assessment Report and companion Brief. The document spells out the bottlenecks and challenges for small and very small meat and poultry operations and outlines several recommendations that will help position processors for success and create a stronger foundation across the industry.
The study’s authors interviewed more than two dozen industry stakeholders to compile the report. These individuals included processors, state meat inspection groups, farm organizations, state meat association boards, and meat-cutting program instructors. Based on these conversations, a set of common, critical issues emerged that were divided into six categories: supply chain challenges, networking and collaboration, operational efficiency, regulatory compliance, workforce, and education and training.
Based on the identified needs, the authors prioritized several deliverables supporting resiliency in the local and regional meat processing industry. These included the development of a Resource Database, a Byproduct and Hide Utilization Study, a Cold Storage Assessment, and several meat and poultry processing short courses. These reports are available on AURI’s website.
The report also identified additional action steps to address overarching issues:
• Better utilization of contracts between processors and producers to manage workflow and market demand, access to better tools to manage risks associated with input costs (equipment, ingredients, packaging, etc.), and resources to understand consumer and market needs.
• The report also recommends creating a resource database and nurturing peer-to-peer mentoring opportunities to facilitate knowledge sharing across the industry.
• Industry benchmarks should be created and shared widely to assist processors achieve operational efficiencies in their businesses on issues like facility optimization, floor layout, and other process flow considerations.
• The authors recommend providing additional technical assistance and expanding awareness of the USDA’s Meat and Poultry Processing Technical Assistance Program (MPPTA) network to help processors better understand and navigate the industry’s complex regulatory system, including wastewater rules and guidance, zoning, and permit requirements, and issues related to aging facilities.
Like many industries, meat and poultry processing faces a worker shortage as Baby Boomers retire. To build the talent pipeline for the next generation of meat and poultry processing workers, the authors recommend outreach to women and minorities to build awareness of meat processing careers.
Additional work could be done to start internships, scholarships, tuition reimbursement programs to encourage students to pursue careers in the meat processing industry, and further support meat cutting programs in Minnesota and surrounding states and their emerging curriculums.
Training the existing workforce is critical to maintaining quality operations and driving growth. The industry needs to develop new delivery methods to efficiently reach as many processors as possible with quality training opportunities. In addition to remote and traditional training, the authors recommended conducting hands-on sessions at processing facilities to train several employees at once.
“Small and very small businesses are integral to our region’s meat processing industry. They create jobs and food for our region and strong rural communities. This Needs Assessment Report was an important project to help this critical industry continue to thrive and evolve,” says Clay Newton, AURI’s Meat Innovation Specialist. “This report documents many of the underlying factors, both large and small, that processors deal with daily. It also presents a roadmap to address the short- and long-term challenges that must be overcome. We are thankful for the support of the United States Department of Agriculture and all our partners and supporters who contributed to this important work and are ready to move the conversation forward on these important issues.”
The Upper Midwest Meat & Poultry Processor Needs Assessment Report is part of a two-and-a-half-year partnership between AURI and the United States Department of Agriculture’s Agriculture Marketing Service (USDA-AMS) to build resiliency within the local and regional meat processing sector. The project identified some of the financial barriers facing small meat and poultry processors, produced a needs assessment to guide technical assistance and business development, and presented multiple solutions to assist the industry in overcoming barriers. More information about AURI’s collaboration with the USDA-AMS, as well as the complete catalog of briefs, reports, and tools, is available here.
About AURI
The Agricultural Utilization Research Institute is a nonprofit whose mission is to accelerate the expansion of the agricultural economy by empowering expanded uses and markets of agriculturally derived products. It accomplishes this by using science and technology to help develop new uses for agricultural products. It collaborates globally, acts regionally, and is known as an economic catalyst in Minnesota communities by helping businesses take advantage of innovative opportunities in two focus areas: bioindustrial products and food. AURI provides a broad range of services, including applied research and development, scientific assistance, and a targeted network of resources to develop value-added uses for crops and coproducts. To learn more visit auri.org.
