May 28, 2020

Small US and Canadian meat processors overwhelmed as COVID-19 closes major plants

Smaller slaughter operations in the United States and Canada are benefitting from major meat plants closures due to COVID-19, as farmers and consumers turn to them to alternatives to maintain food supply, Reuters reported.

There are some 1,500 independent slaughterhouses in the US, which processes livestock on a small scale for sale to the public.

But these businesses, largely family owned, are backlogged because of the imposed closures on major meat plants due to COVID-19. These small slaughterhouses are forced to decline farmers and impose rations on meat sales.

80% of beef in the United States are produced by four companies. Economists say 1% of swine are processed at independent slaughterhouses.

In Alberta, Canada, Cargill and JBS plants are operating under reduced capacity and forcing farmers to turn to smaller abattoirs to prevent a backlog of cattle.

These small scale slaughterhouses are only able to slaughter 20 head a week, compared to Cargill's 4,500 head daily capacity. These smaller operations have begun pre-selling beef and reported increased sales but cannot meet surging demand.

-      Reuters