More Meat Processing Facilities Needed, USCA Says

Processing capacity in meat production is indeed needed to meet current demand and alleviate supply chain issues. Recently, construction on processing plants were announced nation wide.  

"The start, where we were already starting," said Lee Reichmuth board member at the U.S. Cattleman's Association. "It takes time for one to get financing lined up, which is hundreds of millions of dollars.  There's also permits that need to go into place.  It takes a lot to open up a plant."

Usually two years for a processing facility to be completed and operational. Which, he said, does not lend toward short-term solutions regarding processing capacity. He added with a myriad of factors such as labor shortages and balancing economies of scale within supplies, he doesn't see construction of future facilities that can accommodate 5,000-6,000 thousand head of cattle a day.

"I think there's gonna be more of what I call moderate-size, herding a thousand to 1500.  That size is large enough to be efficient."

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