USDA GIVES $73 MILLION TO CREATE, EXPAND SMALLER LIVESTOCK PROCESSORS

WASHINGTON- The U.S. Department of Agriculture announced on Wednesday that it would be rewarding its first grants, totaling around $73 million, to increase the processing capacity of smaller, independent meatpackers in 16 states.

$20 million of those funds are being given to a small meat processor in Omaha, and is expected to help increase capacity by around 29%.

The funds are coming from the Department's $375 million Meat and Poultry Processing Expansion Program, which seeks to reduce the market share of a small number of livestock processors. The program was announced this summer, and 21 grants have been awarded thus far.

U.S. Secretary of Agriculture Tom Vilsack believes the grants will help the country's food supply chain become more resilient. "It will give the consumer the ability and potentiality to be able to purchase locally," said Vilsack, "They may be able to know that the ribeye or the hamburger or the pork chop of the chicken breast that they're purchasing was actually raised and processed locally."

The Greater Omaha Packing Company, which received the $20 million grant, processes around 2,400 cattle per day. The grant money will help that facility expand to boost processing to 3,100 cattle per day and add an expected 275 jobs.

"We'll be returning hundreds of jobs to a small rural community," said Vilsack.

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