Department of Livestock executive officer Mike Honeycutt told the subcommittee the agency is preparing for growth in meat and poultry processing while it builds a new Montana Veterinary Diagnostic Lab in Bozeman.

Honeycutt said the new diagnostic lab is under construction and the department will move equipment and operations from the aging Marsh Laboratory into the new facility, requiring one‑time equipment purchases and some moving and start‑up costs. The hearing record shows a one‑time lab equipment investment of about $1.1 million to outfit the new lab.

On meat inspection, Honeycutt said federal and state efforts after COVID incentivized small processors and that some facilities require near‑full‑time inspection coverage when they operate. The department asked for eight new meat inspection positions and the subcommittee approved four. Honeycutt said the department is projecting demand and will hire as needed; if growth outstrips four new inspectors the department would seek additional staff, but the subcommittee opted for a measured increase.

The agency also described a fund shift in animal health and milk inspection due to reduced federal funding and shrinking dairy numbers. Honeycutt said the milk inspection program's fee (14¢ per hundredweight) does not cover rising program costs and the department proposes a fund mix to avoid a steep fee increase for small dairies.

County and industry representatives in public comment (Montana Stock Growers, cattlewomen and related groups) expressed support for the department's budget and staffing proposals. Honeycutt said much of the one‑time equipment spend is tied to the new diagnostic lab and to readiness for modern lab service agreements.