Pages

Thursday, February 28, 2013

USDA Sequestration is Inevitable - Meat Plants Will Shut Down

 
Picking up from where we left off on my last post about sequestration and the meat industry, this came across my newsfeed this morning. 

"USDA Says Meat Plant Shutdowns Inevitable in Budget Cuts

USDA says meat plant shutdowns inevitable in budget cuts

- See more at: http://www.dairyherd.com/e-newsletters/dairy-daily/USDA-says-meat-plant-shutdowns-inevitable-in-budget-cuts-193448121.html#sthash.Fi01bgfW.dpuf

U.S. meat packers and processors face short-term shutdowns because of impending federal budget cuts but the administration will try to minimize the impact on the industry and consumers, the Agriculture Department said on Tuesday.
The automatic cuts, also called sequestration, are due to take effect on Friday because Congress and the White House are unable to agree on other ways to reduce the federal deficit. USDA says the cuts would force it to lay off its 8,400 meat inspectors for 15 days to produce the savings ordered for its food safety agency.
Early this month, the White House raised the prospect of a mass layoff, which would shutter the meat industry for two weeks. Plants cannot operate without USDA inspectors.
A House subcommittee chairman, Texas Republican Michael Conaway, said on Tuesday that USDA might order furloughs on non-consecutive days to mitigate their effect and keep plants running.
"Specific furlough dates for (inspectors) have yet to be determined but there is no question sequestration will have an adverse effect on food inspection services," said USDA spokeswoman Courtney Rowe. "USDA is taking steps to minimize the impact of the furloughs on consumers, our employees and the meat industry."
Even so, there would be some shutdowns, USDA said, because there is no way to stretch the workforce to cover all plants while reducing outlays enough.
The administration estimates some $10 billion in production would be lost if inspectors were laid off en masse for two weeks, or their agency's share of cuts. Stores and restaurants could run short of meat temporarily.
The USDA did not respond to questions about how it would approach possible furloughs at its Agricultural Marketing Service (AMS), which among other things generates prices used as benchmarks for livestock futures at CME Group Inc. The USDA has not mentioned AMS in its comments about the sequester.
Conaway said the administration has not replied in writing to his request for information about meat inspections and the White House budget office "owes us an explanation." The budget office was the first to raise the prospect of a furlough of all 8,400 inspectors and a resultant meat industry shutdown.
Although the spending cuts are due to take effect on Friday, it could be weeks or months before the meat industry is directly affected. Meat inspectors are guaranteed at least 30 days' notice of a furlough.
"This is a direct prescription from Congress to reduce every line item," Agriculture Secretary Tom Vilsack said last week.
Up to one-third of the USDA's 100,000 employees may be affected by furloughs. The USDA says the cuts would deny food aid to 600,000 pregnant women, new mothers and infants and also force closure of hundreds of Forest Service campgrounds, picnic areas and visitors' centers during the spring and summer."

So, according to this, USDA will do their best to space out the furloughs but it may not be completely possible to ensure that meat processing and packing will not shut down for at least a short while. This, obviously, will have a noticeable impact on supply and eventually price of meat in the grocery store, although it may not happen for quite some time.

Now that we have a bit more information on the topic - what are you thoughts? Upset with Congress and our White House leader for not being more responsible?

Until next time,
~ Buzzard ~


U.S. meat packers and processors face short-term shutdowns because of impending federal budget cuts but the administration will try to minimize the impact on the industry and consumers, the Agriculture Department said on Tuesday.
The automatic cuts, also called sequestration, are due to take effect on Friday because Congress and the White House are unable to agree on other ways to reduce the federal deficit. USDA says the cuts would force it to lay off its 8,400 meat inspectors for 15 days to produce the savings ordered for its food safety agency.
Early this month, the White House raised the prospect of a mass layoff, which would shutter the meat industry for two weeks. Plants cannot operate without USDA inspectors.
A House subcommittee chairman, Texas Republican Michael Conaway, said on Tuesday that USDA might order furloughs on non-consecutive days to mitigate their effect and keep plants running.
"Specific furlough dates for (inspectors) have yet to be determined but there is no question sequestration will have an adverse effect on food inspection services," said USDA spokeswoman Courtney Rowe. "USDA is taking steps to minimize the impact of the furloughs on consumers, our employees and the meat industry."
Even so, there would be some shutdowns, USDA said, because there is no way to stretch the workforce to cover all plants while reducing outlays enough.
The administration estimates some $10 billion in production would be lost if inspectors were laid off en masse for two weeks, or their agency's share of cuts. Stores and restaurants could run short of meat temporarily.
The USDA did not respond to questions about how it would approach possible furloughs at its Agricultural Marketing Service (AMS), which among other things generates prices used as benchmarks for livestock futures at CME Group Inc. The USDA has not mentioned AMS in its comments about the sequester.
Conaway said the administration has not replied in writing to his request for information about meat inspections and the White House budget office "owes us an explanation." The budget office was the first to raise the prospect of a furlough of all 8,400 inspectors and a resultant meat industry shutdown.
Although the spending cuts are due to take effect on Friday, it could be weeks or months before the meat industry is directly affected. Meat inspectors are guaranteed at least 30 days' notice of a furlough.
"This is a direct prescription from Congress to reduce every line item," Agriculture Secretary Tom Vilsack said last week.
Up to one-third of the USDA's 100,000 employees may be affected by furloughs. The USDA says the cuts would deny food aid to 600,000 pregnant women, new mothers and infants and also force closure of hundreds of Forest Service campgrounds, picnic areas and visitors' centers during the spring and summer.
- See more at: http://www.dairyherd.com/e-newsletters/dairy-daily/USDA-says-meat-plant-shutdowns-inevitable-in-budget-cuts-193448121.html#sthash.Fi01bgfW.dpuf
U.S. meat packers and processors face short-term shutdowns because of impending federal budget cuts but the administration will try to minimize the impact on the industry and consumers, the Agriculture Department said on Tuesday.
The automatic cuts, also called sequestration, are due to take effect on Friday because Congress and the White House are unable to agree on other ways to reduce the federal deficit. USDA says the cuts would force it to lay off its 8,400 meat inspectors for 15 days to produce the savings ordered for its food safety agency.
Early this month, the White House raised the prospect of a mass layoff, which would shutter the meat industry for two weeks. Plants cannot operate without USDA inspectors.
A House subcommittee chairman, Texas Republican Michael Conaway, said on Tuesday that USDA might order furloughs on non-consecutive days to mitigate their effect and keep plants running.
"Specific furlough dates for (inspectors) have yet to be determined but there is no question sequestration will have an adverse effect on food inspection services," said USDA spokeswoman Courtney Rowe. "USDA is taking steps to minimize the impact of the furloughs on consumers, our employees and the meat industry."
Even so, there would be some shutdowns, USDA said, because there is no way to stretch the workforce to cover all plants while reducing outlays enough.
The administration estimates some $10 billion in production would be lost if inspectors were laid off en masse for two weeks, or their agency's share of cuts. Stores and restaurants could run short of meat temporarily.
The USDA did not respond to questions about how it would approach possible furloughs at its Agricultural Marketing Service (AMS), which among other things generates prices used as benchmarks for livestock futures at CME Group Inc. The USDA has not mentioned AMS in its comments about the sequester.
Conaway said the administration has not replied in writing to his request for information about meat inspections and the White House budget office "owes us an explanation." The budget office was the first to raise the prospect of a furlough of all 8,400 inspectors and a resultant meat industry shutdown.
Although the spending cuts are due to take effect on Friday, it could be weeks or months before the meat industry is directly affected. Meat inspectors are guaranteed at least 30 days' notice of a furlough.
"This is a direct prescription from Congress to reduce every line item," Agriculture Secretary Tom Vilsack said last week.
Up to one-third of the USDA's 100,000 employees may be affected by furloughs. The USDA says the cuts would deny food aid to 600,000 pregnant women, new mothers and infants and also force closure of hundreds of Forest Service campgrounds, picnic areas and visitors' centers during the spring and summer.
- See more at: http://www.dairyherd.com/e-newsletters/dairy-daily/USDA-says-meat-plant-shutdowns-inevitable-in-budget-cuts-193448121.html#sthash.Fi01bgfW.dpuf
U.S. meat packers and processors face short-term shutdowns because of impending federal budget cuts but the administration will try to minimize the impact on the industry and consumers, the Agriculture Department said on Tuesday.
The automatic cuts, also called sequestration, are due to take effect on Friday because Congress and the White House are unable to agree on other ways to reduce the federal deficit. USDA says the cuts would force it to lay off its 8,400 meat inspectors for 15 days to produce the savings ordered for its food safety agency.
Early this month, the White House raised the prospect of a mass layoff, which would shutter the meat industry for two weeks. Plants cannot operate without USDA inspectors.
A House subcommittee chairman, Texas Republican Michael Conaway, said on Tuesday that USDA might order furloughs on non-consecutive days to mitigate their effect and keep plants running.
"Specific furlough dates for (inspectors) have yet to be determined but there is no question sequestration will have an adverse effect on food inspection services," said USDA spokeswoman Courtney Rowe. "USDA is taking steps to minimize the impact of the furloughs on consumers, our employees and the meat industry."
Even so, there would be some shutdowns, USDA said, because there is no way to stretch the workforce to cover all plants while reducing outlays enough.
The administration estimates some $10 billion in production would be lost if inspectors were laid off en masse for two weeks, or their agency's share of cuts. Stores and restaurants could run short of meat temporarily.
The USDA did not respond to questions about how it would approach possible furloughs at its Agricultural Marketing Service (AMS), which among other things generates prices used as benchmarks for livestock futures at CME Group Inc. The USDA has not mentioned AMS in its comments about the sequester.
Conaway said the administration has not replied in writing to his request for information about meat inspections and the White House budget office "owes us an explanation." The budget office was the first to raise the prospect of a furlough of all 8,400 inspectors and a resultant meat industry shutdown.
Although the spending cuts are due to take effect on Friday, it could be weeks or months before the meat industry is directly affected. Meat inspectors are guaranteed at least 30 days' notice of a furlough.
"This is a direct prescription from Congress to reduce every line item," Agriculture Secretary Tom Vilsack said last week.
Up to one-third of the USDA's 100,000 employees may be affected by furloughs. The USDA says the cuts would deny food aid to 600,000 pregnant women, new mothers and infants and also force closure of hundreds of Forest Service campgrounds, picnic areas and visitors' centers during the spring and summer.
- See more at: http://www.dairyherd.com/e-newsletters/dairy-daily/USDA-says-meat-plant-shutdowns-inevitable-in-budget-cuts-193448121.html#sthash.Fi01bgfW.dpuf
U.S. meat packers and processors face short-term shutdowns because of impending federal budget cuts but the administration will try to minimize the impact on the industry and consumers, the Agriculture Department said on Tuesday.
The automatic cuts, also called sequestration, are due to take effect on Friday because Congress and the White House are unable to agree on other ways to reduce the federal deficit. USDA says the cuts would force it to lay off its 8,400 meat inspectors for 15 days to produce the savings ordered for its food safety agency.
Early this month, the White House raised the prospect of a mass layoff, which would shutter the meat industry for two weeks. Plants cannot operate without USDA inspectors.
A House subcommittee chairman, Texas Republican Michael Conaway, said on Tuesday that USDA might order furloughs on non-consecutive days to mitigate their effect and keep plants running.
"Specific furlough dates for (inspectors) have yet to be determined but there is no question sequestration will have an adverse effect on food inspection services," said USDA spokeswoman Courtney Rowe. "USDA is taking steps to minimize the impact of the furloughs on consumers, our employees and the meat industry."
Even so, there would be some shutdowns, USDA said, because there is no way to stretch the workforce to cover all plants while reducing outlays enough.
The administration estimates some $10 billion in production would be lost if inspectors were laid off en masse for two weeks, or their agency's share of cuts. Stores and restaurants could run short of meat temporarily.
The USDA did not respond to questions about how it would approach possible furloughs at its Agricultural Marketing Service (AMS), which among other things generates prices used as benchmarks for livestock futures at CME Group Inc. The USDA has not mentioned AMS in its comments about the sequester.
Conaway said the administration has not replied in writing to his request for information about meat inspections and the White House budget office "owes us an explanation." The budget office was the first to raise the prospect of a furlough of all 8,400 inspectors and a resultant meat industry shutdown.
Although the spending cuts are due to take effect on Friday, it could be weeks or months before the meat industry is directly affected. Meat inspectors are guaranteed at least 30 days' notice of a furlough.
"This is a direct prescription from Congress to reduce every line item," Agriculture Secretary Tom Vilsack said last week.
Up to one-third of the USDA's 100,000 employees may be affected by furloughs. The USDA says the cuts would deny food aid to 600,000 pregnant women, new mothers and infants and also force closure of hundreds of Forest Service campgrounds, picnic areas and visitors' centers during the spring and summer.
- See more at: http://www.dairyherd.com/e-newsletters/dairy-daily/USDA-says-meat-plant-shutdowns-inevitable-in-budget-cuts-193448121.html#sthash.Fi01bgfW.dpuf
U.S. meat packers and processors face short-term shutdowns because of impending federal budget cuts but the administration will try to minimize the impact on the industry and consumers, the Agriculture Department said on Tuesday.
The automatic cuts, also called sequestration, are due to take effect on Friday because Congress and the White House are unable to agree on other ways to reduce the federal deficit. USDA says the cuts would force it to lay off its 8,400 meat inspectors for 15 days to produce the savings ordered for its food safety agency.
Early this month, the White House raised the prospect of a mass layoff, which would shutter the meat industry for two weeks. Plants cannot operate without USDA inspectors.
A House subcommittee chairman, Texas Republican Michael Conaway, said on Tuesday that USDA might order furloughs on non-consecutive days to mitigate their effect and keep plants running.
"Specific furlough dates for (inspectors) have yet to be determined but there is no question sequestration will have an adverse effect on food inspection services," said USDA spokeswoman Courtney Rowe. "USDA is taking steps to minimize the impact of the furloughs on consumers, our employees and the meat industry."
Even so, there would be some shutdowns, USDA said, because there is no way to stretch the workforce to cover all plants while reducing outlays enough.
The administration estimates some $10 billion in production would be lost if inspectors were laid off en masse for two weeks, or their agency's share of cuts. Stores and restaurants could run short of meat temporarily.
The USDA did not respond to questions about how it would approach possible furloughs at its Agricultural Marketing Service (AMS), which among other things generates prices used as benchmarks for livestock futures at CME Group Inc. The USDA has not mentioned AMS in its comments about the sequester.
Conaway said the administration has not replied in writing to his request for information about meat inspections and the White House budget office "owes us an explanation." The budget office was the first to raise the prospect of a furlough of all 8,400 inspectors and a resultant meat industry shutdown.
Although the spending cuts are due to take effect on Friday, it could be weeks or months before the meat industry is directly affected. Meat inspectors are guaranteed at least 30 days' notice of a furlough.
"This is a direct prescription from Congress to reduce every line item," Agriculture Secretary Tom Vilsack said last week.
Up to one-third of the USDA's 100,000 employees may be affected by furloughs. The USDA says the cuts would deny food aid to 600,000 pregnant women, new mothers and infants and also force closure of hundreds of Forest Service campgrounds, picnic areas and visitors' centers during the spring and summer.
- See more at: http://www.dairyherd.com/e-newsletters/dairy-daily/USDA-says-meat-plant-shutdowns-inevitable-in-budget-cuts-193448121.html#sthash.Fi01bgfW.dpuf

6 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. I'm upset at both Congress and the White House that this is taking place. Now a little insight into one form of government work - I have a sister who is in the Army. At her base, if this furlough comes to fruition, they are planning on having 4 day weeks for 8 weeks, rather than being "unemployed" for 2 weeks. By doing this, they also won't be allowed to collect unemployment during this time because it won't be a string of days of being unemployed. I think this is what will happen to meat inspectors as well. They'll probably not work on Mondays or Fridays - days where there is the smallest amount of trade.

    ReplyDelete
  3. Val - that's very frustrating as well. There is an army base here in our town and the same thing is going to happen here. I am just appalled at the lack of accountability for actions in DC.

    ReplyDelete
  4. This is pretty ridiculous and irresponsible. Making a sector lose insane amounts of money because Congress can't get their s*** together. Outrageous.

    On the other hand, the US could benefit from eating less meat in general. It's simply better for your health to limit your consumption of red meat to 1-3 times per week. But the meat industry here is so large and employs so many people that I think it would be pretty disastrous if meat production went down in the US.

    ReplyDelete
  5. Anonymous - thanks for your comment. Regarding what you said about eating red meat and nutrtion, have you ever read about the BOLD study.

    It has a lot of great info about including lean beef in a heart healthy diet. There are 29 cuts of lean beef that the American Heart Association has qualified as heart healthy. If you go to www.beefnutrition.org you can find a lot of sound information about red meat in your diet. Thanks for reading!

    ReplyDelete