Washington Report

What Happened: USDA’s Food Safety and Inspection Service (FSIS) on Tuesday published an Advance Notice of Proposed Rulemaking (ANPR) in the Federal Register seeking stakeholder input on whether — and how — the agency should update the size definitions it uses to classify meat and poultry establishments as “very small,” “small,” or “large.” FSIS is asking stakeholders to weigh in on alternative metrics such as production volume, corporate ownership structure, and business revenue.

Why It Matters: The current definitions, which are based on employee count and annual sales, date back to the 1996 Pathogen Reduction/HACCP Systems final rule and have remained largely unchanged since.

The size classifications determine, in part, which regulatory requirements apply to a facility, when compliance deadlines kick in, and which federal assistance programs an establishment is eligible for. Poultry processing facilities that fall under the “small” or “very small” categories may qualify for phased extended compliance timelines, reduced inspection fees, and exemptions from certain labeling and sampling requirements. The current definitions create some significant anomalies — an 11-employee plant and a 499-employee plant, for example, are both classified as “small,” even though their production capacity may be vastly different.

NCC’s Take: We have been advocating for a change to the establishment size definitions for some time and welcome this announcement. It is our position that establishments should be categorized by production volume instead of employee count, ownership structure, or revenue.

What’s Next: NCC will be providing comments to the agency which are due May 26, 2026.