AAMP’s Chris Young foresees a tough labor market for meat processors

By Fred Wilkinson, Chief Editor, The National Provisioner

Red sign hanging at the glass door of a shop saying: "Now hiring". — Getty Images/iStockphoto

*Opening image credit: GettyImages / TGwengoat / Getty Images Plus*

The most common concern members of the American Association of Meat Processors voice regarding attracting and retaining a stable, productive workforce is “the almost nonexistence of trained labor,” AAMP Executive Director Chris Young said.

“There seems to be almost no one available that is trained in cutting meat,” Young said.

Young added that upstream from the lack of workers possessing processing-specific skills is the challenge of finding anyone who wants to work.

“As far as general labor, it seems difficult finding people that want to work, let alone work in our industry where the work can be hard,” he said. “They are even having a hard time finding people to work their retail.

Total nonfarm payroll employment increased by 216,000 in December 2023, according to the U.S. Bureau of Labor Statistics, with unemployment holding at 3.7%. The bureau’s labor market research found that employment continued to trend up in the governmental, health care, social assistance and construction sectors.

For the food-manufacturing sector, BLS statistics placed the unemployment rate at 5.3% for December 2023, up from 1.3% in December 2022.

According to a November 2023 interim report by the House Committee on Agriculture’s Agricultural Labor Working Group, access to a stable, reliable workforce is the most pressing day-to-day challenge facing the meat and poultry processing industry.

The working group’s report said that processors faced labor challenges before the COVID–19 pandemic, and it remains an acute challenge.

The report suggested a potential remedy for processors’ labor needs is allowing processors access to the H–2A program, which allows foreign workers to perform agricultural jobs in the U.S. Jobs in meat packing and processing are not considered “agricultural labor” as defined in the statute, so processors currently cannot source workers through the H–2A program.

The report said additional reforms to address year-round labor needs for agriculture employers merit consideration, including for the meat processing industry.

From the report: “Processors are the harvest stage of the livestock industry, making them essential to the livestock industry and the food supply. The ‘supply chain,’ as the name implies, relies on the strength of each link. Labor problems in the processing sector hampers production and drives up costs. Efforts to address agricultural labor reform could consider both the production and processing sectors.”

Young said another regulatory issue influencing the labor outlook for meat and poultry processors are wages.

“Depending on what state they are in, the minimum wage increases of over $15 per hour can put a strain on a small family-owned company, but we have seen that paying more than that has not influenced people to come to work in a meat plant,” he said.

Some processors are getting creative in their efforts to attract and retain workers.

“Many members are using unique ways to help employees with their bottom line, such as allowing them to buy meat or other goods in their retail stores at wholesale pricing,” Young said. “This makes the employees' pay stretch further.”

He added that some processing businesses are creating a team atmosphere where the employee is more than just a number, and doing extra things throughout the week like feeding them while they are on their shift or trying to help with childcare.

Regarding the labor availability outlook for 2024, Young said it likely will be another challenging year for processors looking to secure adequate staffing.

“I am not sure that I can site any positive developments,” he said. “Labor is still the No. 1 concern and hindrance to growth in the industry with our small processors.”