Meat Processing Plants May Close Due to New EPA Rules
Food Prices Rising
Over the past four years, food prices, particularly meat and poultry, have soared. This trend could worsen next year when new rules for meat processors from the Environmental Protection Agency (EPA) come into effect. The U.S. Department of Agriculture’s Food Price Outlook for September reported that beef and veal prices had increased for six consecutive months, and predicted they will rise 5.2 percent overall in 2024. Poultry prices have also risen, albeit by a smaller percentage, and are expected to rise more before the year ends.
Reasons for Price Increase
The report attributed the rise to factors such as pandemic-related supply chain disruptions and the worst inflation since the 1980s. Analysts predict that next year could see even higher meat and poultry prices at the grocery store. This is due to an EPA proposal that is expected to put some meat processors out of business, resulting in potential job losses and supply chain disruptions.
New EPA Rules
The EPA announced a proposed rule change governing effluent, or wastewater, limits for meat and poultry processors in January of this year, followed by public comment in the spring. The agency’s final rule will go into effect in August 2025. The proposal has been met with opposition from states, industry stakeholders, and policy experts, who fear it will harm the industry, the food supply, and consumers.
Background of the Proposal
The proposed changes were prompted by lawsuits filed by a coalition of 13 environmental organizations. In 2019, the groups challenged the Trump administration under the Clean Water Act for not updating aging water pollution control standards for slaughterhouses and meat processing plants. In response, the EPA pledged to strengthen its regulations, without implementing changes. In December 2022, a second lawsuit was filed, resulting in the current proposal.
Proposed Changes
The proposed rule contains three possible options for reducing wastewater discharges from slaughterhouses and poultry processors through water filtration technology. The EPA estimates that the new rules would reduce pollutants discharged through wastewater from processing facilities by about 100 million pounds per year.
Benefits and Drawbacks
The proposed rules would establish tighter limitations for nitrogen released into the environment by large processors and, for the first time, would limit phosphorus. The rules would apply to processors directly discharging wastewater into bodies of water, and, for the first time, would also apply to those indirectly discharging wastewater via water treatment plants.
Impact on the Industry
The EPA estimates that under its preferred option, at least 16 facilities will be forced to close, impacting at least 17,000 jobs. At the top end, the EPA estimates up to 53 plants could close. Prices for beef, chicken, turkey, and pork products are expected to increase slightly while availability of meat and poultry is expected to decrease slightly, according to the agency.
States Push Back
A coalition of attorneys general from 27 states—led by Kansas and Arkansas—have argued that the rule change amounts to federal overreach. They stated in a March letter to the EPA that part of the rule change that would regulate processors that release wastewater into treatment plants is unnecessary.
Bottom Line
The new EPA rules are expected to have a significant impact on the meat and poultry industry. While the rules aim to reduce pollutants and improve the environment, they also pose a potential threat to the industry and could lead to job losses, plant closures, and increased food prices. What are your thoughts on this matter? Do you think the benefits outweigh the potential drawbacks? Share this article with your friends and let them know what you think. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.
