Forced lockdowns continue to have a devastating impact on supply chains and the industries that support them. Now, the food industry is sounding the alarm that they may not be able to fully recover if restrictions aren’t lifted soon.
Tyson Foods warns that the food supply chain is “breaking,” as pig farmers are being forced to destroy pigs rather than sell them for meat. Employees have been sent home over fears of coronavirus, and that’s leading to plants that simply cannot operate. Crops are spoiling on farms, and farmers are warning that very soon there may be widespread shortages of products in grocery stores.
The Demand Has Shifted
While there’s been a surge in grocery store demand, there’s been a decrease in restaurant purchasing. Farmers have been forced to rethink their supply chains and their supply chain strategies. Furthermore, many large farms are now unable to operate. There are no employees to operate the processing plants, and consequently they cannot get their products out before they spoil.
On top of this, farmers have stated that the US Department of Agriculture isn’t operating fast enough to alleviate their financial issues. With pressure on, farmers are now unsure of how the future will look for them.
What Food Chain Disruption Means for the Public
It’s estimated grocery stores could see some form of food chain disruption for up to a year. Disruptions are delayed, as farmers aren’t going to be able to scale up to meet demand quickly.
But it’s not likely that people are going to be going without food entirely. Food is already created in excess in America, and restaurants and fast casual dining actually contribute to a great deal of waste.
Rather, it’s more likely that people are going to see less variety in their grocery stores. Instead of a dozen versions of bread for a single brand, a single brand might only have a few versions of bread. The public absolutely shouldn’t panic, and shouldn’t consider hoarding. Food is going to be available, but grocery stores are going to look a little different for the upcoming future.
The Farming Industry and the Future
But with farmers throughout the world now destroying their crops, the problems the agricultural industry faces goes beyond simply being able to provide supply. Farmers, especially small farmers, may be going out of business in the coming year, as they won’t be able to meet profitability. The economic collapse occurred during planting season for many farmers, which left them without any resources and without any certainty.
On the positive side, the weather has been good for crops, so the crops that are getting planted and harvested should do well this year. That’s a positive for farmers that are able to survive.
The American farmer has already been experiencing significant issues due to tariffs, and this is the last blow that many of them can take. Farmers are currently struggling, and may not be able to survive without USDA help. While it’s not likely that there will be a significant food shortage, the United States will undoubtedly see its agricultural industry suffering for some time.
