A new $40 million public-private initiative announced ahead of World Hunger Day is creating a stable domestic market for underutilized animal protein products in the United States, aiming to close an 800-million-pound protein deficit while generating new revenue opportunities for American livestock producers. The Coalition to Close the Protein Gap, led by HATCH and supported by USDA, HHS, Elanco and major meat companies, seeks to transform surplus protein into 3 billion nutritious meals annually - a move that could significantly reshape the economics of the U.S. protein supply chain.

For years, products such as poultry leg quarters, hams, medium eggs and ground pork have faced volatile export demand, price pressure and limited domestic consumption channels. Industry leaders now believe those products can become the foundation of a long-term, profitable domestic market tied directly to the charitable food system.

Jeff Simmons, CEO of Elanco and chairman of HATCH, described the initiative as more than a hunger-relief effort. According to Simmons, the project represents a structural shift in how American protein is valued inside the U.S. economy.

"The most demanded product in food today is the food from American protein producers," Simmons said. "We are creating a new market that is going to change lives and create 3 billion more meals."

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Infrastructure investment targets overlooked protein products

The coalition plans to increase animal protein participation in food banks from 14% to more than 20% within three years. To achieve that target, the initiative will finance cold storage systems, transportation logistics and specialized packaging infrastructure capable of handling frozen meat products and eggs destined for food pantries nationwide.

That investment is critical because many packing plants currently lack the infrastructure needed to redirect lower-demand cuts into the charitable distribution network efficiently.

Industry support includes companies such as Tyson Foods, Cargill, Perdue Farms, Hilmar Cheese Company and Rose Acre Farms, alongside organizations representing cattle, pork and egg producers.

The federal government is also backing the initiative through $15 million in combined support from USDA and the Department of Health and Human Services, underscoring growing concern about food insecurity and nutrition access in the United States.

A "cost-plus" model designed to stabilize farm revenue

One of the most important elements for producers is that the coalition will operate under a "cost-plus" pricing structure, rather than relying on donations alone. HATCH executives say the system has already been tested successfully over the past decade.

The approach allows livestock producers to receive consistent compensation for products that might otherwise be sold below value during oversupply periods or weak export cycles.

For the agricultural sector, this could create a new form of domestic demand insulation at a time when producers continue to face high input costs, uncertain trade conditions and fluctuating commodity prices.

Daniel Leckie, CEO of HATCH, emphasized that infrastructure and supply must work together simultaneously to make the system sustainable at scale.

The coalition also aligns with broader conversations around food security, healthcare costs and nutrition policy. Organizers argue that increasing access to animal protein could improve educational outcomes, community health and long-term economic stability.

The initiative arrives as Washington policymakers continue debating the future of the farm bill, nutrition programs and food assistance funding. Analysts note that projects connecting agriculture production directly to nutrition outcomes could gain additional bipartisan support in coming years.

Hunger advocate Tony Robbins, who supports the initiative through the 100 Billion Meals campaign, said the protein gap reflects a disconnect between American agricultural abundance and nutritional access.

Coalition leaders expect the long-term result will be a permanent "meat case" presence in food pantries across the country, supported by a nationwide logistics and freezer network.

For U.S. farmers and ranchers, the initiative could ultimately provide something the industry has struggled to secure in recent years: a predictable domestic outlet for lower-demand protein products that reduces dependence on unstable export markets while strengthening the American food supply chain.