Small, independent meat processors are slicing through industry changes

Ryan Baumert, who owns and operates Faltin Meat Market in Howells, Neb., prepares to use the new meat slicer. With this new machine, bacon can be cut in one minute. Baumert was able to purchase the machine through the Independent Processor Assistance Program (IPAP).

I vividly remember calling in to the local meat locker to make our annual appointments—more than a year in advance. Personally, I thought it was a little ridiculous to be calling for fall 2021 when they had just calved that spring of 2020, but rumor had it that lockers were all booked. Imagine my surprise when I had to call three shops to finally find an opening for October 2021.

The year 2022 was just as difficult to secure appointments. I felt like a new parent who has to call around to find daycare for a newborn infant before telling their families they are expecting.

By now, the intense demand placed upon small, independently-owned meat lockers has abated. However, the industry is still feeling growing pains as it endures increased financial burden, worker shortages and continued demand for locally sourced food.

Meat processors have been offered support financially from the state, regional and national levels. A “historic investment” of $1 billion in grants from the U.S. Department of Agriculture (USDA) was allotted specifically for small- to medium-sized meat packing operations, categorized by the U.S. Food and Drug Administration as having 499 employees or less.

Meat processing requires specialty equipment, such as this large saw at River’s Edge Meat Locker in Fullerton, Neb. The saw is used to cut the carcass in half after the animal has been skinned.

Called the Independent Processor Assistance Program (IPAP), it intends to help existing facilities expand or improve operations. President Joe Biden addressed its influence during his speech Jan. 3, 2022, announcing the program.

“We’ll give farmers and ranchers more options beyond giant processing conglomerates, and shore up the weak points in our food supply chain,” said Biden.

The first round of IPAP was distributed in 2023, and applications for the second wave of funding were accepted until Feb. 16. Approximately $5.1 million is available in 2024 for existing meat processing facilities in Nebraska, but individual grants can be awarded up to $100,000, according to a press release from the Nebraska Department of Agriculture (NDA). Only meat processors with fewer than 25 employees and existing sales revenues of less than $2.5 million were eligible to apply.

Faltin Meat Market in Howells, Nebraska, was one of the 62 meat processing plant recipients from last year’s funding. They utilized the grant to increase capacity.

“Our grant specifically was used to improve a few of our processes in order to speed up production,” said Mary Baumert.

She and her husband Ryan Baumert operate Faltin Meat Market, which Ryan has owned since 2006. Mary also serves as executive secretary and treasurer of the Nebraska Association of Meat Processors (NAMP).

Other meat processors around the state used the grant money for capital improvements, such as expanding intake pens to hold more livestock or adding or repairing refrigeration and freezer space, as shared by Christin Kamm, communications director for NDA.

Others were able to purchase new equipment, such as smokehouses, grinders, stuffers, mixers and vacuum sealers, to process “value added” products in-house.

The new equipment did more than streamline production.

“Some facilities also mentioned the improvements helped them become compliant so that they could become USDA-certified rather than custom-exempt,” noted Kamm. “One facility mentioned that they were able to use the funds to get central heating and air conditioning to allow them to stay operating year-round.”

Only existing and operational meat processing facilities can qualify for IPAP funding. Because of this stipulation, Brad and Candance Gleason were denied funding last year. At the time, the couple was actively working toward building and remodeling a brand new meat processing facility in Fullerton, Nebraska.

“We did apply for grants on the state and national level but were denied because we were not open yet,” Brad said.

The official opening date for their business, River’s Edge Meat Locker LLC, was Oct. 16, 2023.

Their local Nance County Development Agency did award the Gleasons a $10,000 grant.

This was a drop in the bucket compared to the overall cost. The Gleasons invested $2 million in their new facilities, including $300,000 alone in meat processing equipment.

“We try not to think about that every day,” said Brad, apprehension clearly evident in his voice. “But we have to stay busy to make that number.”

There are two things Brad Gleason is known for in his hometown of Fullerton: living by the r…

Herein lies another problem. Production is limited at River’s Edge Meat Locker due to lack of help. They are currently operating at one-third capacity. Brad said they would like to find at least two more full-time employees.

The worker shortage hit the meat processing industry hard during the pandemic. Jordan Wicks, extension meat specialist at the University of Nebraska-Lincoln (UNL), shared results from a needs-based assessment she conducted in 2021 while working at Virginia Tech and again in 2023 when she began employment at UNL.

“Overall, our data suggests that the greatest challenge was having and retaining skilled workers,” Wicks said.

“Skilled” is the key word. As Wicks said, “You might have a body in there, but they may not be able to do the job.”

UNL is working toward a solution to train new and current employees. In collaboration with Nebraska College of Technical Agriculture (NCTA), they are developing a program to expedite onboarding of new employees for the meat processing industry. NCTA has received a $644,489 grant from the USDA for developing the curriculum, according to a press release.

The program is expected to launch in 2025 and will include online training and in-person experience in meat laboratory at NCTA and UNL.

“One they understand the basics of processing the product, we will allow hands-on knife time so they can start to learn in a safe environment where they are not up against the clock or slowing down the production line,” Wicks said.

The labor shortage within the meat processing industry is largely location-dependent. Wicks said some processors have no problem finding help, either because they are a family-run business or in a remote location where job opportunities in other vocations are limited.

Faltin Meat Market has not been challenged by the tight availability of skilled workers in the meat processing sector.

“We are incredibly lucky and have fantastic staff,” said Mary.

One positive shift in the small meat processing industry is the decreasing age of the workforce. Mary verified, saying that the average age of those who attend the NAMP annual convention keeps getting younger. Moreover, there has been an influx in ownership changes recently.

“Quite a few processors changed hands,” said Mary. “Either the owners sold out and new ownership came in or family members took over for the older generation.”

Kristin Eller works quickly to package ground beef at Faltin Meat Market in Howells, Neb. Retaining skilled workers seems to be a location-dependent problem for small meat processors.

The worker shortage within the meat processing industry is far from resolved, but some of the pressure has been relieved.

“While labor is still the number one concern, it’s not as critical as when everybody—and their brother—was trying to process at the local shop during the pandemic,” Wicks said.

Higher beef market prices have certainly slowed the number of animals being harvested at local lockers.

“It’s a chunk of change to get a beef, the highest it’s been for a while,” Mary said.

Customers are paying a lump sum of $700 to $1,500 for processing a whole beef, in addition to an approximate $2,000 to the producer for the actual meat.

“It can be a sticker shock to some,” Brad said.

But because these customers see the value in knowing the source of their food, the desire for locally raised and locally processed meat will likely continue post-pandemic.

“Our industry flourished during COVID because of the demand for meats,” Mary said. “COVID fanned the flame, but the farm-to-table movement is growing. People want to know who grew their beef and who put it on their table.”

Wicks also believes that direct-marketing is a long-lasting trend. Maybe the demand for farm-to-table meats will not reach the spike of 2020, but the need for small meat processors has not hit a plateau.

“Because of recent events, I think people are more willing to buy from their local communities. They see how it strengthens their local economy,” said Wicks.

President Biden referred to them as the “lifeblood of our economy” in his speech announcing the rollout of IPAP.

Small meat processors have proven their worth through the unprecedented chaos stemming from 2020. Despite the financial barriers, lacked of skilled workers and increased demand from the farm-to-table movement, small and independent meat processors have continued to make the cut and evolved with changes in the industry.

Reporter Kristen Sindelar has loved agriculture her entire life, coming from a diversified farm with three generations working side-by-side in northeastern Nebraska. Reach her at [email protected].

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