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Outline of Need:
Over the past two decades, Vermont's meat slaughter and processing industry has undergone substantial loss of capacity. In 1985 the state had 20 commercial slaughterhouses. That number dropped to just 8 by 2001. Although the drop in processors during that same period has been less dramatic, from 23 to 17, the total capacity has declined disproportionately, with the average size of processors also declining.
Currently, approximately two-thirds of the estimated 140,000 animals from Vermont destined for slaughter each year are processed in facilities outside the New England Region. Several factors have contributed to the current industry crisis, including increased regulations and new rules, aging slaughter and processing facilities, shortage of trained workers, lack of access to technical assistance, high energy costs and inefficient equipment, and a need for better business planning.
How Rural Development Helped:
USDA Rural Development's Rural Business Enterprise Grant of $69,950 (learn more about this program) enabled the Vermont Agency of Agriculture, Food and Markets to provide an unprecedented array of technical assistance to the state's meat and poultry processors in the areas of Business Analysis and Planning, Workforce and Training, Value-Added Processing, Rendering/Waste Management, and Marketing.
The Results:
The primary focus of technical assistance delivery for this program was commercial meat and poultry processors. A total of 22 processors participated in the training, including 3 female-owned and two Hispanic-owned businesses. By coordinating the TA with the state-funded Processor Assistance Program, an additional $29,905 state funding was committed for TA to producers, and training was provided to an additional 197 individuals. The addition of two new slaughter operations resulted from this TA with the creation of 15 new jobs, and an additional 44 jobs were saved. In addition, one processor in the Northeast Kingdom decided to put his business on the market during the grant period, a potentially crippling blow to an organized group of producers in that region. By providing TA to that group as a result of the RBEG grant, that processing facility continues in operation. Spurred by the need for more technical assistance, strategic recommendations have been provided to Agricultural Secretary Steve Kerr with a renewed energy and attention within the industry to this critical sector of Vermont 's agricultural economy.
(October 2004)
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