Kosher Meat May Become Difficult To Find

The nation’s largest kosher meat processing plant, Agriprocessors, Inc., located in Postville, Iowa, has filed for chapter 11 bankruptcy protection. The company states that the raids encourage in May 2008 are partially to blame. However, there are other problems lurking. Financially, Agriprocessors is in big concern. They owe approximately 200 creditors somewhere in the neighborhood of $50 to $100 million dollars. First Bank is looking to foreclose on the plants in Postville, Iowa and Gordon, Nebraska. Jacobson Staffing has pulled all of its staffers from the site. Estimates say that this results in just 250 workers remaining at the Iowa plant.

What will this mean to the many Jewish individuals who rely on kosher meat products from Agriprocessors? There has been no talk of shutting down operations. Whether or not bankruptcy protection is offered will have a big impact on that decision. With only 250 workers, a significant decrease in production is eminent. There are other sources in the US for kosher meat. These sources do not equal the output from Agriprocessors. Prices for kosher meat products will surely rise. Consumers do not need a price increase for essentials in these tough economic times. Worst-case scenario is that the plant closes. This will result in a tremendous kosher meat (beef, veal and bison) shortage. People may actually start buying now and freezing the meat in case of shortages later on. The supply of kosher chicken will not be as adversely affected.

Did the raid in May 2008 push Agriprocessors over the edge? Perhaps. It was one of the largest raids ever in US immigration history. Defending allegations made in the raid has cost Agriprocessors a bundle, not to mention the $10 million fine. Loss of this plant is not fair another casualty in the food processing industry. Agriprocessors is the largest employer in the tiny town of Postville IA. Loss of this plant will wreak financial hardship on the town as a whole. With resources already stressed from the May raids, there will be little help for former employees and their families if the plant were to close. Not a happy thought with the onset of the holidays. The town of Postville will lose valuable revenue should the plant go into foreclosure. Overall, it is a bad situation for everyone.

In this particular situation, there are no winners. Unless Agriprocessors comes up with alternate financing, there will be a guaranteed diminished supply of kosher meat on the market. It is unlikely that more employees will be hired to replace those that have left from Jacobson Staffing unless they are critical to the plant’s operations. The current estimates of 250 remaining workers are fair a part of the 800 individuals that were employed prior to the May 2008 raids. It appears that individuals who rely on an abundant supply of kosher meat will have to become more resourceful.

To read more articles on food or Judaism by this author, click on the links below:

Kosher Food On The Internet

Parenting Tips For Families That Do Not Celebrate Christmas

LaBriute Offers Instant Hot Kosher Meals – No Oven or Microwave Required

Sources:

http://content.usatoday.com/topics/topic/Agriprocessors

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