Could we have a meat shortage? Yes, grocers say, as processors close for coronavirus
Grocery stores in the U.S. are concerned about their meat supply after more processing plants closed down because of the coronavirus pandemic, multiple media outlets report.
About a dozen meat-processing and packaging plants have closed across the country in recent weeks - the latest being a Tyson Fresh Meats beef plant in Tri-Cities, Washington, McClatchy reported. Tyson Foods also closed one of its largest pork processing plants in Waterloo, Iowa this week, which represented about 4% of the nation’s pork processing capacity, according to The Washington Post.
“Despite our continued efforts to keep our people safe while fulfilling our critical role of feeding American families, the combination of worker absenteeism, COVID-19 cases and community concerns has resulted in our decision to stop production,” said Steve Stouffer, group president of Tyson Fresh Meats, according to the Post. “It means the loss of a vital market outlet for farmers and further contributes to the disruption of the nation’s pork supply.”
Smithfield Foods Inc., Cargill Inc., JBS USA Holdings Inc. and Hormel Foods Corp. closures earlier this month have led to a significant decline in overall meat production in the U.S., according to The Wall Street Journal. Last week alone, beef production fell 24%, pork production fell 20%, and poultry production fell 10% compared with last month, WSJ reported.
The country’s meat supply relies on just a few massive facilities, with hundreds of independent farmers, truckers, distributors and grocers tied to the Tyson plant that closed in Iowa, the Post reported.
Executives at Walmart and Costco Wholesale Corp. are expressing concerns that some supplies could run short, especially as demand for meat continues to surge because of fad diets, according to the WSJ. Meat prices are soaring as production is cut, with wholesale beef hitting the highest price on record and pork bellies hitting a 137% increase in just five days, Bloomberg reported.
“What people don’t realize is in the coming months, that’s going to be one of the biggest issues out there - is getting the meats and provisions, for not only restaurants, I hate to say it, but grocery stores as well,” Peter Cancro, chief executive officer of Jersey Mike’s Franchise Systems Inc., told Bloomberg.
Raley’s grocery chain in West Sacramento, California, is getting only 80% of its chicken orders as meat sales increased by about 67% last month, Todd Allen, director of meat and seafood at Raley’s, told the WSJ. Industry experts are concerned that shoppers will begin hoarding meat like they did with toilet paper if supplies run low, according to the Post.
Slaughterhouses are also closing down due to the pandemic, which limits the number of places farmers can sell their animals, forcing livestock producers to dispose of them themselves, Bloomberg reported. Potentially, farmers in Minnesota could have to kill 200,000 pigs in the coming weeks, according to Bloomberg.
This story was originally published April 23, 2020 at 8:58 PM with the headline "Could we have a meat shortage? Yes, grocers say, as processors close for coronavirus."