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COVID-19 impacts food supply chain

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United States International Supply Chain Commission
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COVID-19 impacts food supply chain

by usiscc
March 17, 2020
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COVID-19 impacts food supply chain
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The food supply chain in the U.S. took another hit with the increasing fervor surrounding COVID-19. Panic buying cleared the shelves and distribution chains were interrupted by the cancellation of major events ranging from professional sports to the closures of college food service and, most recently, restaurant dining rooms in a number of states, including Colorado.

Jayson Lusk, Purdue University, said though grocery purchasing behavior seems irrational it has been enlightening to see plant-based burgers left behind as meat cases are emptied. Lusk said domestic demand for meat is likely to pull meat out of cold storage, offsetting the reductions in foreign demand that has hit hard some of the U.S.’s largest export markets.

Just as prices dropped following the Tyson fire last summer when the processing capacity was temporarily reduced, a similar capacity decrease due to worker illness would likely have the same effect.

The USDA’s Deputy Undersecretary of Food Safety Mindy Brashears and Undersecretary for Marketing and Regulatory Programs Greg Ibach released a letter to stakeholders Tuesday assuring that USDA is rising to the challenge of meeting the demands associated with the virus.

As inspection services continue as normal now, FSIS is tracking absenteeism, something they typically plan for, to address staffing concerns to minimize impacts to operations.

In a video released the same day, Secretary Sonny Purdue said the food supply remains strong thanks to the work of truck drivers, grocery store employees and food service workers.

In Brazil, Bloomberg reported local prices dropped to a four-month low as demand shifts to mostly home-based meals amid global demand concerns. Meatingplace reported that JBS SA announced Monday they are considering suspending processing operations in Brazil, though they continue to operate normally. China is Brazil’s largest meat importer.

Laura Shunk, communications director for the Colorado Restaurant Association, said restaurant closures will be devastating for restaurant owners and staff. The CRA is compiling a list of resources for owners and employees as they navigate the closures. She said they have also asked local, state, and federal government for assistance.

She said the blow to the restaurant industry is softened slightly by allowing take out and delivery options, but some restaurants aren’t able to do so and have closed their doors.

-Gabel is an assistant editor and reporter for The Fence Post. She can be reached at [email protected] or (970) 768-0024.

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