What are the costs of FSIS compliance and how have these costs affected small- and mid-sized meat processors?
The USDA Economic Research Service (ERS) indicates that the costs of inspection for products from small and very small plants is higher for the plants, producers, and consumers. Inspections represent 4-8 cents on the pound of product costs from small and very small plants and about a cent per pound from very large plants. In part, the cost differences are due to the fixed costs of inspection which impact lower-volume plants more greatly than large volume plants. At a time when there is a growing need for more meat processing facilities, the implementation of HACCP requirements has contributed to the closure of several small-scale meat processing plants, and threatens still more.
