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Incentivizing growth in local meat processors

COVID-19 brought attention to the weakness in the food supply chain and some states are starting to take action.

The state of Kentucky is incentivizing growth in local meat processors in hopes of preventing another supply chain breakdown like what happened as a result of COVID-19.

During a meeting of the Joint Commission on Agriculture, Kentucky Ag Commissioner Ryan Quarrels said they’ve set aside $1 million in grants to help increase slaughter capacity in the state.  One of those grants will focus on adding cooler space at local processing facilities.  “One of the biggest bottlenecks when it comes to processing beef is that a lot of people want beef that’s been chilled and hung on the rail for several days, a couple of weeks, etc.,” he says. 

Other grants will also be available for minor improvements and updates to facilities to increase slaughter capacity or also provide up to $250,000 for a major expansion to a current facility.  There are 27 small to medium-sized processing facilities in the state.

The grants will be funded from the state’s Tobacco Settlement Money.  Kentucky receives $112 million in annual settlement funds and half of the funds are used toward agriculture diversification.