Meat and Poultry Industry Will Lose Billions Is Sequestration Takes Effect on March 1st

February 25, 2016

 

Unless Congress passes a $1.2 trillion deficit reduction package by March 1st sequestration will go into effect making across-the-board cuts to discretionary spending mandated by the Budget Control Act of 2011.  This will in turn cut $51 million from the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS).  The shortfall would require the USDA to furlough food inspectors for up to 15 days shutting down 6,200 meat and poultry plants.  The furlough would cost the meat and poultry industries $10 billion and $400 million will be lost in wages.  These additional costs and product shortages would raise retail prices of meat, poultry and eggs while endangering food safety and consumer confidence.

 

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