Denver’s Superior Farms Processing Facility Faces Shut Down
Denver residents will soon be voting on whether or not to keep their 70 year old processing facility. The employee owned plant, Superior Farms, is one of the biggest in Colorado and is known for having a large capacity for sheep. The organization, Pro- Animal Future, campaigned to put the ban on the ballot arguing that the facility contributes to unwanted pollution in the Denver area. They represent Coloradans who maintain that the facility has inhumane practices. If residents vote in favor of the ban, not only would the sheep industry be impacted in Colorado, livestock agriculture in the state could face a monumental agricultural shift that would affect the state’s economy as well as the nation’s supply chains.
How Many Jobs Would Be Impacted by a Ban?
Though the proposed ban aims to help animals, the collateral damage is human livelihoods. Colorado is the sheep state. Estimates suggest that if Superior Farms is forced to shut down it would impact over 2,700 people and $860 million in economic activity. The plant itself employs 160 individuals whose jobs would be terminated. The plant is employee owned and therefore represents a huge potential loss for employees who have substantial equity in operations. Many of them have worked there for more than a decade and seen the agricultural areas surrounding Denver turn into residential communities.
While most of us prefer to think of sheep grazing on pasture and put less thought into the butchering process, it is a necessary part of a secure food supply. Shutting down a single facility will hurt humans more than help animals. Incomes earned at Superior Farms pay mortgages and electric bills. They foot the restaurant bill and put gas in the cars. Take these jobs away from Denver and you take away revenue from more than just 160 people, you take it away from the businesses that depend on their incomes.
The estimated 2,500 plus affected individuals also accounts for the families and ranch hands who raise sheep all over the state of Colorado; the men and women who haul their livestock as well as the local businesses who purchase and sell or serve lamb. While their jobs would not be terminated, the logistics of their operations would be impacted and, in turn, disrupted by new financial obligations. Fewer animals being transported in the state, diminished supply of lamb, or higher priced cuts of meat could work to undermine a healthy market.
In 2023 there were 400,000 lambs processed in Colorado, 300,000 of which were processed at Superior Farms. Of the 21 facilities certified by the USDA to process sheep, Superior Farms is by far the largest. In fact, it is responsible for processing 20% of the nation's lamb. Fewer processing plants makes the market riskier for producers. They have less competition for their animals, giving them less price power. When there are fewer processors, they have more pricing power and can raise prices to consumers as well.
The Market For Lamb Won’t Disappear
While the processing plant might shut down, the demand for its products may not. Colorado raised lamb is highly sought after. Western Colorado ranches will likely look to Wyoming, Utah and Idaho as possible destinations for their livestock. The more road time a lambchop has, the more expensive it becomes.
Pro-Animal Future aims to eliminate livestock agriculture in the state; however, if the ban is accomplished, the business of processing sheep will likely move outside of the state and cuts of lamb travel back into Colorado to be sold at prices that reflect the additional travel time.
Land in Colorado is good for raising sheep and the end result of grazed sheep, something that lamb lovers prefer. Polls have shown that Denver area residents place a high value on locally raised and processed food options. They actually want to know that their meat didn’t come from an animal that had to sit on a trailer for a long time on its way to being processed. We will have to see if they like meat production and processing that local.
However, another survey reported that many Denver residents don’t even know there is a meat processing facility in their vicinity. Superior Farms believes this is a win. If their neighbors don’t realize they are there, that means they have done a great job. But, those in favor of the ban see it as a prime opportunity to inform residents about animal rights and pollution in the hopes of rallying more to their cause.
News of the ballot approval comes at a strenuous time for the sheep industry. Like all livestock industries in the United States, drought and feed prices have strained ranch finances. Last year R-CALF USA’s Sheep Committee filed a petition with the U.S. Trade Commission because they felt that imported lamb was undercutting domestic operations. Decreasing the number of certified facilities capable of processing high numbers of sheep could weaken supply chains and make the United States more dependent on foreign sources of lamb.
Colorado State’s Study Results
In a worst case scenario we might see processing facilities collectively move out of Colorado. As with other industries that have confronted policy change and ballot votes, packing up and moving to a more accommodating state pulls millions of dollars out of the state economy. This vote is significant in that, win or lose, it will set a precedent for agriculture in Colorado. If Superior Farms closes it will ultimately affect all livestock industries, not just sheep.
According to a CSU study, full shutdown or relocation of multiple facilities working in solidarity means approximately $861 million dollars would leave Colorado annually. If some stay and others relocate the numbers drop to $430 million per year. And of course, existing Colorado facilities, USDA certified or not, could absorb a large percentage of animals and keep revenue in the state.
The larger issue is that if this ban is approved, all Colorado livestock industries will feel threatened. Agriculture is a primary economic driver in Colorado and sheep are a big part of that. Whether we associate them with the city of Denver or not, the city plays a huge part in keeping our food supply secure.
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