Ballot measure 309 in Denver aims to ban slaughterhouses within the city and county limits. If passed, the measure would effectively close the only such facility in the area, Superior Farms, located in the Globeville neighborhood north of Denver. As an associate professor of animal sciences at Colorado State University, I have been part of a research team examining the potential impacts of this proposed ban on the local, state, national, and global meat supply chain.

Preserving Colorado's Lamb Legacy

The Importance of Superior Farms

The Superior Farms lamb processing facility employs approximately 160 people and represents 15% to 20% of the total lamb slaughter capacity in the U.S. Our study found that the sheep harvested at this Denver facility primarily come from Colorado and the surrounding Mountain West region. Colorado's rugged rangeland is well-suited for sheep ranching, making it the third-largest sheep-producing state in the nation, after Texas and California. The state is home to another large lamb-processing facility in the Northeastern plains and 21 smaller facilities around the state. However, the ability of these other processors to market meat to consumers is far less than that of Superior Farms, due to capacity or inspection limitations. Our report suggests that the closure of the Denver facility would require most of the sheep harvested there to be processed in other states, potentially leading to increased costs and concerns for animal welfare.

The Ripple Effect on Sheep Producers

Our study suggests that the proposed ban and closure of Superior Farms could have a potential 2% impact on the livestock production industry nationwide. The effects, which have been observed after closures of meat-processing facilities in other regions, include fewer sheep produced and a decline in the economic value of live sheep. This would also involve a loss of livestock employment opportunities and a transition away from sheep production toward other enterprises. Many sheep producers who have historically sent their lambs to Denver for harvest may not be able or willing to ship them to other states due to increased costs and concerns for animal welfare, ultimately leading them to make difficult decisions about the future of their operations.

The Importance of Federal Inspection

Only 33 of Colorado's 120 meat-processing operations are inspected by the U.S. Department of Agriculture Food Safety and Inspection Service (FSIS). The remaining facilities are considered exempt from federal inspection and are instead regulated by the state of Colorado. This distinction is crucial for sheep producers and meat processors to access consumer markets. The Federal Meat Inspection Act of 1906 established standards for the safety and quality of meat products, as well as the well-being of animals at the time of harvest. The FSIS is responsible for implementing these standards through continuous onsite inspection and a robust approval and record-keeping structure. Meat products from facilities that are exempt from federal inspection are not eligible for resale, limiting their market access.

The Global Reach of the Meat Industry

The meat industry is a global enterprise, and the success of the U.S. meat industry is interwoven with relationships with other meat-consuming countries. In the case of lamb, the organ meats and other less frequently consumed lamb products produced at the Denver Superior Farms facility are often exported to countries such as Mexico, Canada, and the Caribbean. Maintenance of these trade relationships is crucial for the profitability of sheep ranchers, as the export market increases the average value of U.S. sheep. A reduction in exports to other countries, and a decline in profitability for U.S. ranchers, will likely increase imports of lamb from Australia and New Zealand to meet U.S. demand. Balancing the value of the export market with imports from other countries underpins the profitability of livestock and meat producers across the globe.

The Broader Implications

Though Americans often think of the food system and meat supply chain in the context of their local markets, it is a global industry with exquisitely complex and interwoven relationships. Changes in one part of the supply chain can and do have tangible, and in some cases irrevocable, effects on other supply chain components. Denver voters will not be making a decision only about their city and local food supply chain. Their decision will affect the national and global lamb industry, with far-reaching consequences for sheep producers, meat processors, and consumers alike.