Posted on 04/23/2020 5:04:06 AM PDT by blam
We have some troubling news developing deep inside America’s food supply chain network, suggesting rapid food inflation could be dead ahead.
In the last several weeks, six major US meatpacking facilities have shuttered operations because of the coronavirus outbreak. That means 15% of America’s hog-slaughtering capacity has been shifted offline, and there is an additional risk that beef and poultry capacity could be reduced in the weeks ahead, reported Bloomberg.
With every virus-related plant closure, farmers have been denied access to meatpacking facilities/slaughterhouses, resulting in herd overcapacity and suggests euthanizing hogs could be next.
Dennis Smith, a senior account executive at Archer Financial Services, warned that “meat shortages” will occur “two weeks from now in the retail outlets.” That means by the first week of May, certain pork products could be out of stock at grocery stores across the country.
“There is simply no spot pork available. The big box stores will get their needs met, and many others will not.”
Cold storage facilities only have a few weeks to cushion supply disruption of the latest plant closures. Bob Brown, an independent market consultant in Oklahoma, said cold storage supplies have a little more than a week’s worth of production – and wouldn’t be sufficient in satisfying demand.
We noted on Wednesday Tyson Fresh Meats, the beef, and pork subsidiary of Tyson Foods, released a statement that said its top producing pork plant in Waterloo, Iowa, will suspend operations until further notice because of virus-related issues. For similar reasons, Hormel’s Rochelle Foods closed its plant last week. Outbreaks have also forced closures for JBS SA in Minnesota and Colorado and Smithfield Foods Inc. in South Dakota. Several other meatpacking plants have recently come back online from virus-related shutdowns.
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(Excerpt) Read more at redliontrader.com ...
As long as bacon is safe...
People don’t understand how interconnected we are. This goes along way in the food supply chain.
Like ethanol plants closing, no CO2 for meat processors, no CO2 for breweries, etc.
This is not going to end well. Prepare accordingly. (Find a local butcher shop. Place an order)
Going to be a rough BBQ summer unless you have connections. Although I suspect we’re talking lower grade factory farm cuts.
This is not worth the shut downs. It’s not a joke. It’s scary.
In a classic case of economic cross-elasticity, will a shortage of pork may mean an increase in sales of long pork?
I was grocery shopping yesterday and noticed bacon was nowhere to be found. Better Half had said not to buy any so my thought was .... that was easy. Let the panic purchases begin ....
Bet the problem isn’t the plants, but the living conditions for workers.
Counties, states, and Fedzilla have not dealt with the problem of illegals in the meat packing industry. And those problems extend to more than just working conditions
hahahaha yes, we plan to stock up on pork chops, bacon and sausage this weekend. I’m HOARDING!!! but we are trying to stay good on KETO and well, you eat meat on KETO.....
I’d hate to be a deer this Fall.
Several other meatpacking plants have recently come back online from virus-related shutdowns.
Doesn’t that water-down the point of this story? Guess that’s why it was buried at the end.
That’s all folks.
This is not going to end well. Prepare accordingly. (Find a local butcher shop. Place an order)
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Small, local shop told me two weeks ago they’ve never been busier.
Big thanks for mentioning pet food!!
I hadn’t thought of that...
Get used to turkey bacon. Yes, sacrifices must be made.
The local shops will be where it’s at I’m figuring. The grocery stores other than Meijer/Walmart etc will get their supplies but the mom and pop stores will suffer. This stupid “pandemic” has screwed the country.
That’s why I a have huge non-working freezer full of bags of dog food.
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