New owners of Palmer slaughterhouse import cattle to stay in business

For the first time since at least 2001, cattle are being imported into Alaska for direct slaughter.

Direct slaughter is the industry term for animals imported to be killed at a processing facility without spending any time at Alaska farms. Two loads of cattle were imported from Canada in May and June according to import permits filed with the Alaska office of the state veterinarian.

The 76 animals — purchased from ranchers in British Columbia and Alberta — were transported to Mt. McKinley Meat and Sausage plant in Palmer, where they were slaughtered within 10 days of their arrival.

It's part of the business plan for the slaughterhouse's new owner, Greg Giannulis, who purchased the plant from the state in May.

Alaska's livestock industry is small, and Giannulis said there aren't enough locally grown animals being processed in the slaughterhouse in order to make a profit. So he turned to direct imports — at least until the industry can catch up.

"We need animals in the slaughterhouse," he said.

State veterinarian Bob Gerlach said the direct import for slaughter permits are the first he's seen since he took over the position in 2001. Gerlach didn't know when exactly the last imports had been done, but said a slaughterhouse in North Pole was the last to do such imports.

Animal imports to Alaska aren't anything new — hundreds of hogs, cattle and poultry come into the state each year — but most are transported to farms to be raised for a months or years before entering the food chain.

Those animals have stricter inspection requirements because they're more likely to mix with local populations, and veterinarians want to make sure the animals won't pass along any diseases. The state veterinarian isn't required to inspect animals coming to the state for direct slaughter, though the animals are still inspected by the U.S. Department of Agriculture.

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Under state ownership, the Mt. McKinley Meat and Sausage plant averaged losses of $100,000 a year. The state took ownership of the facility in 1986 after its original owners defaulted on the loan.

But legislators consistently targeted the facility for closure, arguing that the meat plant belonged in the private sector. The facility is the lone USDA-certified slaughterhouse in Southcentral Alaska, and without it producers cannot sell meat to restaurants and grocery stores.

Fear that the slaughterhouse would close had a chilling effect on farmers, according to Amy Seitz, executive director of the Alaska Farm Bureau. Alaska farmers have been reluctant to invest in larger herds of cattle and swine for fear the slaughterhouse would close, she said, and leave them with a product they cannot sell.

Scott Mugrage is owner of Misty Mountain Farm in Delta Junction, and at 500 head of cattle has one of the largest farming operations in Alaska.

He said there are benefits to consumers with direct slaughter of animals, even if the animals aren't local. He said the meat can be "weeks" fresher than frozen products from the Lower 48.

Mugrage said growing animals in Alaska is expensive. Many farmers import cattle from out of state and then raise it for slaughter. Animals considered "Alaska Grown" must only spend 51 percent of their life in the state.

"The cost of raising one from start to finish (in Alaska) is just way more expensive," Mugrage said.

Giannulis is optimistic the industry will catch up, and he's also looking at starting a large cattle operation himself, though it would be years before such an operation would come online.