Over the past four years, food prices – particularly meat and poultry – have seen a significant increase. This trend is expected to continue next year due to new EPA regulations for meat processors.
The U.S. Department of Agriculture’s Food Price Outlook for September reported a continuous rise in beef and veal prices, with an overall predicted increase of 5.2% in 2024. Poultry prices have also risen and are expected to continue increasing.
This surge in prices is attributed to pandemic-related supply chain disruptions and high inflation rates not seen since the 1980s.
Analysts anticipate even higher meat and poultry prices in the coming year, as new EPA rules are set to impact meat processors, potentially causing job losses and disruptions in the supply chain.
The EPA introduced a proposed rule change concerning effluent limits for meat and poultry processors earlier this year, with the final rule scheduled to take effect in August 2025.
The proposed regulations have faced opposition from various states, industry stakeholders, and experts who fear negative consequences on the industry, food supply, and consumers.
The EPA’s proposal follows lawsuits by environmental groups challenging the outdated water pollution control standards for slaughterhouses, leading to the current rule change.
The proposed regulations aim to reduce pollutants in wastewater from processing facilities, with estimated benefits including improved environmental quality and reduced health risks.
The U.S. Environmental Protection Agency in Washington on Jan. 4, 2024.Madalina Vasiliu/The Epoch Times
The proposed rules aim to set standards for oil, grease, total suspended solids, and biochemical oxygen demand in wastewater, impacting a significant number of processing facilities.
States have raised concerns over the potential impacts of these regulations, arguing against federal overreach and unnecessary regulations on facilities that indirectly discharge wastewater.
Workers process chickens at a poultry plant in Fremont, Neb., on Dec. 12, 2019. Nati Harnik/AP Photo
The attorneys general criticized the EPA for claiming unprecedented authority to regulate indirect discharges, calling the proposed rule both expensive and illegal. They also raised concerns about the accuracy of the data used by the EPA, suggesting that the agency relied on information from groups involved in lawsuits against them to develop the rule.
The EPA defended its proposal by citing findings from a 2018 report that revealed significant pollution levels from meat processors like Tyson Fresh Meats. However, critics, including industry insiders and advocacy groups, argued that the proposed changes would have a more significant economic impact than the EPA estimated.
According to a study by the U.S. Poultry and Egg Association, compliance costs under the EPA’s plan would be over $1 billion annually, leading to the closure of 74 facilities and the loss of tens of thousands of jobs. Some small business owners, like Ryan Schmidt of Schmidt’s Meat Market, expressed concerns that the new regulations could force them out of business and have devastating effects on their communities.
While the EPA downplayed the potential impact on prices and supply, stakeholders warned that the consequences could be far-reaching, affecting not just processors but also farmers, consumers, and the overall food industry.
“There will be fewer processors, meat and poultry will be more difficult to find, and prices may skyrocket,” Schmidt said.
Koch Foods of Park Ridge, Illinois, which employs more than 13,000 people, responded that the proposed changes would cause “significant facility closures” and adversely impact small businesses.
The food processor estimated the number of closures would be closer to 48 and questioned the data used in the government’s analysis.
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