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More states move toward direct-to-consumer sales

Charles Wallace
Mar. 11, 2021 6 minutes read
More states move toward direct-to-consumer sales

Currently, 27 states have a state-run meat inspection program, while other states rely entirely on federal inspection. Nebraska lawmakers have introduced legislation aimed to make the state among those who currently have state inspection programs. Additionally, a Colorado bill would allow sales directly to consumers without inspection by a public agency.

According to the National Agricultural Law Center, state-level meat inspection must be “at least equal to” federal standards. State inspection programs allow for meat processed in these facilities to be sold within the state (intrastate), while federal inspection facilities can export meat to other states. To sell meat retail, a processing facility cannot conduct slaughter operations without a state or federal inspector present.

Exemptions to inspection include custom-exempt and retail-exempt, where meat can be processed for an animal owner exclusively for use by the owner. Consumers can also buy an animal share of livestock before the animal is slaughtered and the producer acts as the agent to arrange transportation to the slaughter and processing facility.

Nebraska

With LB 235, Nebraska looks to be the 28th state to allow for state inspection of meat processing facilities. The bill sponsored by Sen. Tom Brewer (R-Gordon) would revise the Nebraska Meat and Poultry Inspection Law to enable the Department of Agriculture to employ a “program administrator” who would be responsible for coordinating activities necessary with the USDA to implement the program “at least equal to” the federally run program.

Citing an editorial in the Omaha World-Herald which read, “Nebraska should be to beef what Napa [County] is to wine,” Brewer wrote in his weekly update column that Nebraska is the beef state and home to “the best in the world.” He added the state needed “laws that open up these new markets for ranchers who make the most valuable thing we produce in Nebraska.”

“The bottleneck created by the response to COVID-19 showed us how a great market for beef quickly began to struggle because we lack slaughter capacity in Nebraska,” Brewer wrote. “We need laws that incentivize the opening of small-town meat lockers in Nebraska.”

The bill requires the director to report to the legislature on or before Dec. 1, 2021, a description of what is necessary to implement the program, including costs and fee schedule, to be “sufficient to fund the state program of meat inspection.” The state treasurer would create a Cooperative State Meat Inspection Cash Fund for funding the program.

Nebraska Cattlemen’s Association President-Elect Brenda Masek testified in favor of the bill, stating it would give producers another avenue to market their product.

“We continue to see incredible innovation from cattle producers across the state to think outside the box and take advantage of the consumer buying trend,” Masek told WNAX radio, “particularly in the direct-to-consumer sales and this will definitely be a benefit to these trends.”

Nebraska State Agriculture Director Steve Wellman spoke in opposition to the bill, citing it would cost the state $3 million a year and have little impact on livestock producers.

According to Brewer’s weekly update on March 9, the Department of Agriculture submitted “inflated fiscal notes” to the agriculture committee “intended to frighten the senators on the committee with a shocking price tag. We call this ‘death by fiscal note.’”

Masek stated it would not be that much of a burden cost-wise to the state Department of Agriculture between the USDA reimbursing 50 percent of costs and fees paid by producers and others.

Since its hearing on Feb. 2 with the state agriculture committee, there has been no activity on the bill.

Colorado

A bill in Colorado would allow consumers to buy an animal share on either whole or portions of livestock, including cattle, calves, sheep, bison, hogs, goats, and rabbits for future delivery.

Senate Bill (SB) 21-079, sponsored by Sen. Jerry Sonnenberg (R-Sterling) and Rep. Rod Pelton (R-Cheyenne Wells), dubbed the “Ranch to Plate Act,” would allow a producer to sell directly to consumers without “licensure, regulation, or an inspection by a public health agency,” provided a few conditions are met.

These conditions include: The producer either displays or provides a written disclaimer that states the seller is not licensed, and the animal or meat is not subject to state inspection by a public health agency. The meat is delivered directly from the seller to an informed end consumer and is sold only in Colorado and not resold by the consumer.

An animal is required to be inspected by Colorado Department of Agriculture brand inspectors once before being slaughtered “notwithstanding the livestock being sold to multiple purchasers.”

Commercial processing of an animal or animal share is permitted and may include making “value-added meat products such as sausage or jerky.” A seller is not liable in a civil action for any damages if the meat is not adequately cooked or prepared for consumption.

A provision in the bill says the sale of rabbit meat must be “derived from an animal raised by the person” and slaughtered by the person. A previous provision in the bill regarding poultry, which included domestically raised chicken, geese, duck and turkeys, was removed.

Currently in Colorado, producers who sell animal shares must have the animal processed by state-inspected custom processing facilities and the meat wrapped or packaged with “not for sale.”

The bill passed its third reading unanimously in the Senate on March 1 and moved onto the House Agriculture, Livestock and Water Committee.

At their meeting on March 9, Fremont County Commissioners passed a resolution supporting SB 21-079, stating agriculture in the county employs 1,400 people with the majority in ranching and livestock production.

WA, NM update

On March 3, the New Mexico House of Representatives unanimously passed SB 33, re-establishing a state meat inspection program after the state stopped the program in 2007.

The bill moved through the Senate Conservation Committee and moves to the full Senate for a vote.

Progress also occurred on Washington’s SB 5045, cosponsored by Sen. Judy Warnick (R-Moses Lake), to create a state-run meat and poultry inspection program with requirements equal to those of USDA. The Senate passed the bill unanimously on March 2 and referred it to the House Rural Development, Agriculture and Natural Resources Committee.

“The way that COVID-19 impacted our meatpacking and processing industry highlighted a need to reform how they are regulated at a state level,” Warnick said in a statement. “We need to be more innovative and bring this oversight into the state’s control to avoid problems in the future. If we do it right, it will mean more opportunity for smaller producers and more local options for consumers.” — Charles Wallace, WLJ editor

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