$41M Grants for South Dakota Meat Processors

By Scout Nelson

South Dakota, known for its cattle industry, is investing in local meat processing to give ranchers more options and consumers fresher meat. The COVID-19 pandemic exposed vulnerabilities in the large, centralized meatpacking industry. In response, federal and state grants are helping small and mid-sized processors expand.

The Biden Administration’s American Rescue Plan Act of 2021 allocated $1 billion (about $3 per person in the US) to enhance small and mid-sized meat and poultry processors. South Dakota received about $27 million, including $3.3 million for Wall Meat Processing.

Additional funds were allocated through various grants and programs, with significant contributions from Governor Kristi Noem’s $5 million in Coronavirus Relief Funds.

One such business, Dakota Butcher, is using a federal grant to increase processing capacity at their main facility.

This will allow them to supply all their stores with locally sourced meat. This trend is great news for ranchers, who can now potentially bypass large processors and get a better price for their cattle.

Historically, ranchers have faced challenges due to industry consolidation. A larger share of the market is controlled by a few big players, squeezing profits for producers at the bottom of the supply chain.

Local processing offers an alternative, potentially increasing rancher income.

Local processing also boasts environmental and social benefits. Shorter transport distances for cattle reduce greenhouse gas emissions.

New processing facilities create jobs, and consumers gain access to potentially higher quality, locally raised meat.

Beyond federal grants, efforts are underway to allow state-inspected meat products to be sold across state lines.

This would further expand markets for producers and give consumers more choices. The future of South Dakota's meat industry appears to be moving towards a more localized and sustainable model.

Photo Credit: gettyimages-luoman