January 25, 2021

Potential for expansion of Utah, US beef processing, according to researchers

There is growth potential for the US state of Utah's beef processing and sales, according to researchers from Utah State University Extension and the Utah Department of Agriculture and Food who assessed the potential for expanding meat processing capabilities in the state and examined the potential demand for Utah beef.

Researchers also concluded that residents in Utah desire local beef products. Small processing plants that position local beef as a premium product are a financially feasible option that could increase the resiliency of the state's meat supply and provide ranchers with additional revenue streams.

The research was initiated after the impact of COVID-19 showed the need for greater capacity and resiliency in the US meat supply chain. Beef production fell 30% within weeks of the declaration of pandemic status and safety measures implemented shortly thereafter decreased production capacity.

Beef producers resorted to other options for processing their animals, and the combination of those factors led to bottlenecks in production and a break in supply.

Prefacing the report with this review of the pandemic's nationwide impact, researchers examined the state's current meat processing situation and the potential demand for Utah-produced beef. They assessed the financial feasibility and potential economic contributions of expanded or additional meat processing facilities.

"Utah consumers desire local beef products, and a significant portion are willing to pay a premium for them," Ruby Ward, professor in the Utah State Department of Applied Economics, said. "A very small-scale meat processing facility can be feasible but would require that beef is sold and positioned as a premium product."

- St George News