Emerging Issue: Agricultural Processing Growth

To support the diversity of Michigan agriculture, there also needs to be a robust processing sector and opportunities for farms to pursue value-added initiatives. A robust processing sector can help insulate the food system from market shocks, support the consumption of local food, and help decrease food insecurity. In recent years, agricultural processing facilities have faced several challenges that persist.

There are several regulations that govern agricultural processing and on-farm value-added initiatives. One is groundwater discharge permitting, managed by the Michigan Department of Environment, Great Lakes, and Energy. This permit covers wastewater from agricultural processing that is land applied, or otherwise put in/on the ground. New updates to this permit can be a significant expense for processors and discourage new processors from opening in Michigan.

Food safety regulations and private sector requirements are also a factor; it can be a significant undertaking, with several potential audits necessary to access retail markets. Some sectors have also been impacted by processor consolidation, which has impacted farmers’ access to timely processing and limited options when making decisions on what to do with their products. 

Thoughts to consider

• What barriers to entry exist for growing the food processing sector or increasing on-farm value-added initiatives? 
• What is impacting current agricultural processors’ ability to remain competitive and in business? 
• What support is needed to ensure the longevity and economic sustainability of current processors?

Policy references

MFB Policy #2 Agricultural Innovation and Value-Added Initiatives

MFB Policy #28 Michigan Meat Processing Industry 

MFB Policy #61 Antitrust

MFB Policy #83 Michigan Department of Environment, Great Lakes, & Energy Policy

AFBF Policy #341 Food Quality and Safety

Additional resources

Starting Food Processing?

Fact Sheet: Slaughterhouse/Meat Processor Groundwater Discharge Permit

MSU Extension Safe Food & Water

Antitrust enforcement in Agriculture