In November, Denver residents will vote on a significant ballot measure that proposes the prohibition of slaughterhouses within the city limits beginning in 2026. Superior Farms in Denver highlights how this initiative poses substantial economic risks for Denver and the wider Colorado region.
Key Economic Findings
A comprehensive analysis of the potential economic impacts of the proposed slaughterhouse ban reveals several critical findings:
- Economic Output Decline: Even if 80% of the lost slaughterhouse economic activity in Denver is retained elsewhere within Colorado, the total economic output in the metro Denver area may decline by an estimated $760 million in 2026.
- Job Losses: Should the measure pass, job losses in Metro Denver are anticipated to range from 1,930 to 2,160 by 2026. Notably, over 65% of these job losses could occur outside the food processing industry sector, indicating a broad economic impact.
- Environmental Impact: Contrary to proponents’ claims, net emissions from the measure are unlikely to decrease. In fact, they may even increase due to the demolition and construction of new slaughterhouse facilities and longer shipping routes for goods.
- Agricultural Sector Impact: Colorado is a leading lamb and sheep processor in the U.S., accounting for roughly 19% of the nation’s total lamb and sheep production in 2022 and 2023. Disrupting this industry would harm the state’s agricultural economy and status as a top producer.
- Future Investments: The measure could deter potential future investments in Colorado’s agricultural industry. The annual National Western Stock Show, which supported $171 million in economic activity in 2023, could also be adversely affected.
The Proposal
The “Prohibition on Slaughterhouses” initiative is one of several proposals on Denver’s upcoming ballot. If passed, it would prohibit the construction or use of slaughterhouses within Denver beginning in 2026. This prohibition would be unprecedented in the U.S., although similar initiatives are currently being considered in Sonoma and Berkeley, California.
Opponents believe that the measure will negatively impact Colorado’s agriculture sector by reducing output and jobs. They argue that it could serve as a precursor to further regulations on the agricultural sector, undermining the industry’s economic viability.
Who is Impacted?
Colorado’s agricultural sector is substantial, with over $9.2 billion in sales in 2022. Livestock, poultry, and related products accounted for $6.4 billion, or 70% of this total. The state ranked 16th in the U.S. for gross livestock sales, highlighting the significant role of the livestock market in Colorado’s economy.
Colorado leads the nation in lamb and sheep processing, accounting for 19% of total U.S. production in 2022 and 2023. The state processed 397,000 head of sheep in 2022, outpacing the next closest state, Texas, by 39%. Disrupting this production would threaten Denver’s economic growth and its status as the top lamb and sheep producer, impacting the livelihood of thousands of citizens.
One major processing plant in Denver, Superior Farms, would be directly affected by the measure. Located in the Globeville neighborhood, Superior Farms processes thousands of sheep annually, accounting for 15-20% of the nation’s lamb slaughter capacity. The facility employs approximately 170 workers who would lose their jobs if the measure passes.
Potential Impact
Despite claims that industrial animal agricultural operations significantly contribute to climate change, the proposed measure may actually increase emissions in Colorado. While prohibiting slaughterhouses in Denver would raise the price of these goods, this would be unlikely to reduce the overall demand for lamb and meat products. This demand would still need to be met, leading to increased emissions from longer shipping routes or the construction of new facilities outside Denver.
Moreover, Colorado producers might hesitate to invest in new facilities within the state if this legislation passes, perceiving long-term investments in the state’s animal processing sector as high risk compared to more stable neighboring states.
Colorado boasts the largest lamb and sheep processing industry in the country, significantly contributing to the state’s economy and supporting its agricultural sector. If the proposed measure passes, it would not only harm the metro Denver and Colorado economy but also negatively impact future investments in the state’s agricultural industry. The potential job losses, economic output decline, and increased emissions highlight the complex and far-reaching consequences of the proposed slaughterhouse ban. Voters should carefully weigh these impacts when considering the upcoming initiative in November.