New regulatory costs jeopardise minor US meat processors

Increased regulatory costs included in an initial draft guidance issued by the Food Safety and Inspection Service (FSIS) is putting small and independent meat processors at a significant economic risk.

That document spells out new and costly requirements for local meat processors under the Hazard Analysis and Critical Control Point (HACCP) Systems Validation proposal.

In a letter to the FSIS, the American Farm Bureau Federation (AFBF) stated that many of its members who raise livestock, ''rely on small and independent meat processors'' to process meat they raise for their own consumption. In addition, local meat processors offer farmers and ranchers ''opportunities to create specialty and value-added products marketed through niche outlets.''

''Local meat processing facilities are most at risk from increased costs due to (new validation costs for) multiple species and multiple products, with a relatively low volume over which to spread those costs. The loss of small and very small establishments would be devastating to our livestock-producing members,'' AFBF's letter stated.

AFBF also said it has received ''literally hundreds of concerns'' from small, independent meat processors over the last three months pointing out the damaging economic consequences of the proposed rule. Increased compliance costs ranged from US$65,000 to approximately US$640,000 per year for those local plants.

''It is critical that we maintain vital processing capacity in rural areas,'' AFBF's letter stated.

The organisation strongly urged FSIS to ensure that the new validation process accommodates concerns about exorbitant new expenses. In many cases, flexibility in addressing the regulatory requirements and costs ''may make the difference between a plant remaining in operation or being forced out of business,'' the letter cautioned.

''We encourage FSIS to continue HACCP education efforts, particularly in the areas of validation and verification. Working with the industry to promote a greater understanding of all HACCP components may well prove to be more effective to overall food safety than new testing and microbiological requirements,'' AFBF stated.