State has no offers for slaughterhouse

PALMER -- Even a rock-bottom rent set at one dollar per year hasn't been enough to attract private sector bidders to the state-owned slaughterhouse that has operated since the 1980s in the industrial park on Palmer's south side.

"We haven't gotten any proposals yet, and they're due Monday at 3 p.m.," Alaska Division of Agriculture Director Rob Wells said Friday.

Mount McKinley Meat and Sausage was constructed with state financing in the early 1980s and privately operated from 1983 to 1985 until the facility was repossessed by the state's Agriculture Revolving Loan Fund. The facility was re-opened in 1986 under an agreement between the ARLF, the agriculture division and the Department of Corrections, which provides labor for the plant.

Corrections still operates the facility, offering work and training to inmates, but last spring the department announced that it would get out of the slaughterhouse business, citing budget cuts and a potential savings gained by reducing the number of prison guard hours at Palmer Correctional Facility. Ironically, 2001 was the first year the division within corrections that operates the plant was able to claim a profit. It was, admittedly, a modest profit of $6,600.

MMM&S operates a USDA-inspected kill floor, making animals slaughtered there legal for commercial sale. Agriculture officials say this is critical for Alaska's livestock industry. The plant also buys all livestock that comes its way and is the only avenue for recovery costs for local dairy farmers. Recovery costs are earned by selling cows that either no longer give milk or unneeded calves, also known as "veal calves." Both are valuable by-products of milk production.

There are three other USDA-inspected slaughterhouses in Alaska. All three are smaller than the one in Palmer. Two are on islands, serving ranchers on Kodiak and Unmak on an as-needed basis.

Should the plant close, Alaska's fledgling red meat industry could also be hurt. Preston and Roberta Pyrah of 49er Farms have been watching the slaughterhouse closely. The Pyrah's, with their partner Eric Pearson, have been working to establish a bison operation near Bodenburg Butte since 1996. The majority of the small herd -- now about 50 animals -- arrived in 1999, but bison take about three years before they can produce calves for an economically stable herd and the operation has sold only a few un-needed bulls so far. Preston Pyrah wrote to the agriculture board that 49er Farm has plans to make its first significant sale of 25 animals to MMM&S next spring. He believes his costs will increase if the plant closes and he has to ship bison further or use two separate facilities for slaughter and inspection.

"Our goal is to promote the Alaskan grown product to the consumer, but if the cost to process it is too great, then it cannot be done, and the Alaskan farming industry will not continue to grow," Preston wrote.

Last week, Roberta Pyrah said the Pyrahs are also concerned for others, citing dairy farmers, 4-H members and hobby farmers.

"It's not just us. It would definitely affect a lot of people. It's like throwing a pebble into a lake. I don't think the people in charge realize the ripple effect on everyone in the Valley," Roberta said. When queried, she even cited cultural effects a plant closure might have.

"It's almost like they're trying to wipe out history, if you ask me," she said.

Wells and the Board of Agriculture and Conservation have had a request for proposals on the street and advertised in newspapers around the state. Wells said Friday that three proposal packets have been picked up. One inquiry came from California, but as of Friday, no proposals had been submitted.

The slaughterhouse has been busy with the fall harvest season, but the current agreement between corrections and the agriculture division will expire at the end of December. There is another deadline in December that agriculture administrators need to make.

"The legislature wants us to report back to them in December and explain what we've done to dispose of Mount McKinley Meat and Sausage," Wells said.

Wells said officials at agriculture and corrections have agreed to re-visit the agreement on a month-to-month basis after that, but added that people on both sides of that agreement will likely be changing as Governor-elect Frank Murkowski starts to make appointments.

"That's why I've made it clear to [Murkowski's transition team] that this is something they're going to have to deal with right away," Wells said.