By OBBM Network Editorial Staff

Derived from an episode of As A Man Thinketh – Yanasa TV.

The US food system is facing a crisis, and it’s not just about inflation and supply chain issues. The real danger lies in the disappearing middle, the independent regional processors and buyers that stand between the mega meat monopoly and the rest of America. These small processors are the backbone of the local food system, providing a vital link between farmers and consumers. However, they are getting squeezed to the breaking point, and the consequences of their disappearance could be catastrophic.

The Crisis Facing Small Meat Processors

According to Charlie and Shuana Rankin, hosts of As A Man Thinketh – Yanasa TV, the federal government’s decision to spend $500 million to support small meat processors is a clear indication that something is seriously wrong. The program, known as the Strengthening Processors for US Ranchers (SPUR) initiative, aims to help these processors cover their overhead costs and keep them in business.

The crisis facing small meat processors is complex and multifaceted. One of the main factors is the 75-year low in cattle herd size, which has resulted in a shortage of animals to process. This, combined with the high fixed costs of running a processing facility, has made it difficult for small processors to stay afloat. As Charlie and Shuana Rankin note, ‘When those plants disappear, they don’t come back just because the cattle herd rebuilds. It takes months, sometimes weeks, to shut down a plant. But it takes years to build one. And a lot of capital.’

The Consequences of Disappearance

The disappearance of small meat processors could have significant consequences for the entire food system. Without these processors, local farmers and ranchers will lose their options for selling their products, and will be forced to rely on the large meat monopolies. This could lead to a loss of competition, higher prices, and lower quality products. As Charlie and Shuana Rankin warn, ‘If your local processor closes, the consequences are that your local ranchers, farmers, and producers lose their options. They essentially become price takers of these large meat monopolies.’

The USDA’s Response

The USDA’s decision to launch the SPUR initiative is a wise move, according to Charlie and Shuana Rankin. The program will provide up to $500 million in payments to independent, US-owned processing companies, to help them cover their overhead costs and keep them in business. This is a temporary solution, but it is a necessary one, as it will help to prevent the collapse of the small meat processing industry.

Closing Synthesis

The crisis facing small meat processors is a complex and multifaceted one, and the consequences of their disappearance could be catastrophic. The USDA’s decision to launch the SPUR initiative is a step in the right direction, but it is only a temporary solution. To address the long-term issues facing the industry, we need to think about how to rebuild the cattle herd, support local farmers and ranchers, and promote competition in the meat industry. The full episode of As A Man Thinketh – Yanasa TV is available on OBBM Network TV.

Watch As A Man Thinketh – Yanasa TV on OBBM Network TV: https://www.obbmnetwork.tv/series/as-a-man-thinketh-yanasa-tv-207902