The USDA (United States Department of Agriculture) announced this Tuesday (30) the launch of the Processing Capacity Strengthening Program for Cattlemen in the United States, aimed at supporting small and medium-sized beef processing establishments in the country. The initiative provides for US$500 million in payments to eligible companies.
According to the USDA, the objective of the program is to offer temporary support to slaughterhouses facing increased costs of purchasing cattle for slaughter due to reduced animal supply and other conditions currently affecting the North American livestock market. The funds will be administered by the Agricultural Services Agency.
According to the North American government, establishments under federal inspection may participate in the program, in addition to units inspected by authorized programs.
To be eligible, companies must be US-owned and cannot be classified as dominant in the national beef processing market. The USDA said it will consider a company whose market share is equal to or greater than that of the fourth largest processor in the sector to be dominant.
In the statement, the USDA highlighted that the beef processing sector in the United States, with four companies accounting for approximately 85% of processing capacity, two of which are “foreign controlled”, such as JBS and MBRF.
The agency also reported that it is at its lowest level in 75 years.
