Government regulations. Need we say more?
While new regulations are often put in place to protect or enhance people’s lives, products, or industries, inevitably a few companies are not going to benefit. In some cases, a few may even stop doing business altogether.
Such is the case in the state of California. New federal food safety regulations coming into force this fall have caused two renderers in the Golden State to stop collecting carcasses, meat, fat, and bone material. They are small family-owned companies that have been servicing their communities for generations. Yet the cost of upgrading equipment and hiring more personnel to ensure compliance was not cost-effective so business models were adjusted. At one company, the grease collection routes were sold and it stopped collecting fat and bone material, bringing closure for one family and creating opportunity for another (see Newsline). At the other, the cessation of raw material collection is producing a crisis in an area that is logistically difficult to service. The decision of one may eventually provide opportunity for another but at this time it has created concern and a slew of uncertainty within several industries and state government.
Yet renderers have been here before…companies close or sell off and service routes get adjusted. Change. Yes, it is difficult but oh so inevitable. Consolidation in the rendering industry will only continue as the way of doing business gets more complicated and costly. How rendering operations were run in the past (“old school”) will need to transform to meet new government, client, and consumer demand (“new school”). There are the players who have always done things one way now engaging with individuals who bring with them new technologies and more advanced ideas on meeting these new demands. In 10 years, the leaders of today’s industry will change over to new faces who will carry on at ensuring rendering remains the viable and sustainable industry it has been for more than a century.
The time is ripe to embrace this emerging change.
June 2016 RENDER | back