News Meat
US invests hundreds of millions in livestock and meat
Livestock farmers in the United States who had to have their cattle euthanized last year due to a lack of slaughter capacity will be compensated. Pig, turkey and chicken farms in particular ran into problems last year. There will also be a large support package to strengthen the meat processing sector.
This was announced by the United States Department of Agriculture. Large-scale corona outbreaks among employees in American slaughterhouses caused these companies to temporarily shut down last year. For many livestock farmers who produce cattle for slaughter, this meant that they immediately ran into problems with the sale of their animals ready for slaughter. In some cases, this left nothing but euthanasia and destruction.
The ministry intends to reimburse 80% of the value of the animals destroyed. This applies to all animals that were euthanized in the period from March 1 to December 26, 2020. In total, the scheme is worth about $50 million.
Infrastructure vulnerability
The major problems that arose last year have also shown the government and entrepreneurs the risks of an increasingly concentrated slaughter industry. This was made clear again recently when JBS, one of the largest meat processors in the country, was shut down by hackers. The US government has therefore now launched a plan to invest no less than $500 million in new slaughterhouses and meat processing locations.
The money comes from an American corona support package for companies. The intention is that companies can borrow or receive money in the form of subsidies to set up new processing locations for pigs, chickens and cattle. The measures should also lead to more competition in the processing industry, so that primary producers receive better prices for their animals.
Steve Wissink
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