High demand for beef leaves empty shelves in US stores
Disruptions in the US supply chain is leaving empty shelves in stores, creating a false image of food shortage for the consumer, says David O’Diam, brand Vice President of Retail at Certified Angus Beef, Ohio. "The empty store shelves and cases we’re seeing aren’t an indicator of a food shortage, but rather a demand problem. In uncertain times, people feel the very natural impulse to stock up. But when a lot of us buy a lot more than we need, that creates a disruption in the normal systems that are so reliable in getting the right products in the right amounts to market," he explained in a post on the company's website.
The main problem is seen in the perishable sector, which is affected by logistic problems that can not be foreseen. One challenge in the short term is trucking. Regardless of what goods are available, companies are scrambling to schedule both trucks and truck drivers, both of which are in exceptionally high demand.
Another issue is regarding the staff available for the retailers. From drivers to stockers to cashiers, retailers need additional staff in the short term: a need they’re also hoping to meet with those who have recently lost restaurant jobs. "Whether you’re talking about beef or labor, the resources are all still there. There’s still going to be a little bit of juggling in the short term, as we continue working to adjust things across the supply chain," added O'Diam.
The US meat market has been impacted by the COVID-19 crisis even in the processing sector, where major players such as Tyson Foods, JBS or Hormel had to close some plants due to health security issues among their workers.
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