Meat&Poultry - January 2013 - 8

Commentary
BY BRYAN SALVAGE
bsalvage@sosland.com
Facing a year
of uncertainty
Many industry offi cials are a mixture
of optimistic and fearful of what 2013
may bring. Everyone would love to see
the US economy show signs of a more
consistent recovery instead of spurts of
sunshine shining through the clouds
every now and then.
Each protein group will have its own
set of challenges. For example, shrinking
US cattle numbers and the cost of
beef will continue to challenge this
industry this year so running more
effi cient plants will be a major goal.
This is the focus of a story written
by industry veteran Steve Krut for this
issue (See “Resolving to Survive, Page
74). In it, he concludes 2013 will be
a year of uncertainty for many small
meat and poultry processors.
According to Krut, during the
slower winter months after a ho-hum
business year in 2012, some smaller
processors are worried about having
enough money to pay their utilities. All
processors were concerned about the
uncertainty they faced if the US fell
over the fi scal cliff – which would have
resulted in tax increases, spending
cuts and a corresponding reduction
in the US budget defi cit beginning in
January if existing laws remained unchanged.
If we took that leap, it was
projected the defi cit would have been
reduced by about half in 2013. This
sharp decrease in the defi cit (the fi scal
cliff) would have likely led to a mild
recession early this year.
Small processors are also con-
cerned about increasing health-care
costs. The Patient Protection and Affordable
Care Act (Obamacare) has all
businesses on edge because they don’t
know what to expect cost- or qualitycare
wise. Meanwhile, private insurance
costs have been pricing many
smaller businesses out of the market.
One small processor of a federal-
ly inspected plant said his major fear
for this year is dealing with the unknowns
– and one of the largest unknowns
includes the pending tax-law
changes. He’s worried about how he
will be able to write off the cost of new
equipment in the future. He is also
worried about US Dept. of Agriculture
regulation changes on the type
and frequency of tests for new strains
of E. coli. He’s concerned about both
the high costs of tests plus the time
that will be needed to take more tests
and get them to the laboratory.
The largest concern for one small
processor in 2013 is the money it will
cost for inspection requirements regarding
Hazard Analysis and Critical
Control Point validation.
But regardless of the challenges
they face, just as they have during decades
past – most smaller processors
plan to weather the slowed economy
and adjust to the ever changing realities
of doing business as opposed
to retiring or selling their businesses.
One comment Krut received
from a small processor perhaps
best sums up this industry’s attitude
in facing the start of a new
year – “I will do what I have to do
to survive.” ■
We would like to hear from you – to comment
on this story or to request reprints, contact
us by email at meatpoultry@sosland.com.
8 • Meat&Poultry • January 2013 • www.MeatPoultry.com
EDITORIAL STAFF
Editor
Joel Crews
Executive Editor
Keith Nunes
Senior Editor
Bryan Salvage
Managing Editor
Kimberlie Clyma
Contributing Editors
Richard Alaniz Larry Aylward
Donna Berry Dr. Temple Grandin
Steve Kay
Leo Quigley Bernard Shire
Internet Editor
Erica Shaffer
Graphic Designer
Fiona Rogers
PUBLISHING STAFF
Chairman and Group Publisher
Charles S. Sosland
Vice-Chairman
L. Joshua Sosland
President, Publishing Director
Mark Sabo
Publisher
Dave Crost
North American Sales Director
Bruce Brown
Publisher Emeritus
Mike Alaimo
BUSINESS/PRODUCTION STAFF
Vice-President & Chief Financial Offi cer
Melanie Hepperly
Audience Development Director
Don Keating
Director of E-Business
Jon Hall
Director of On-line Advertising and Promotions
Carrie Fluegge
Circulation Manager
Judy Arnone
Design Services Manager
Sadowna Conarroe
Manager of Advertising Design
Becky White
Classifi ed Sales Representative
Lily O’Kane
Classifi ed Designer
Steve Piatt
Digital Systems Analyst
Marj Potts
Advertising Manager
Nora Wages
Advertising Materials Coordinator
Sharon Alexander
Phone: (816) 756-1000 Fax: (816) 756-0494
Letters via email can be sent to
be sent via fax to (816) 756-0494. The Editor
reserves the right to edit letters for length,
content and clarity.
Requests for reprints of articles should be
sent to reprints@sosland.com or call
Taré Torres at (816) 756-1000.
a division of Sosland Companies, Inc.
Sosland Publishing Co.,
meatpoultry@sosland.com. Letters may also
Editor, Meat&Poultry, 4800 Main Street,
Suite 100, Kansas City, MO 64112.
Address editorial correspondence to:
Editorial: jcrews@sosland.com
www.MeatPoultry.com
Sales: dcrost@sosland.com
Steve Krut
http://www.MeatPoultry.com http://www.MeatPoultry.com
Meat&Poultry - January 2013

Table of Contents for the Digital Edition of Meat&Poultry - January 2013
