Posted on 05/01/2020 5:40:13 AM PDT by blam
Just days after the CEO of Tyson Foods warned that the food supply chain is breaking, the disruptions due to the coronavirus are starting to surface not only in households and grocery stores, but also across corporate America, and even McDonalds has now said it is changing how it is doling out beef and pork to its restaurants as a result.
The company has placed items like burgers, bacon and sausage on controlled allocation, according to Business Insider. Additionally, the companys distribution centers have been placed on managed supply.
This means that the company is now going to be rationing meat supplies based on demand, instead of just ordering what the company thought was necessary. And while it doesnt yet mean the company is facing shortages, it does suggest that even the largest US fast food restaurant believes further scrutiny of its inventory is warranted as the next may very well be shortages.
Two key McDonalds suppliers are Smithfield and Tyson names we have covered extensively (here and here) over the last month as they grapple with the coronavirus causing significant production bottlenecks. More than 5,000 factory workers have contracted the coronavirus, with at least 20 of those dying.
McDonalds executives said mid-week that major production reductions were expected through at least the first half of May. McDonalds CEO said on Thursday that the company, so far, had not had a supply chain break.
He also admitted, however, the state of the meat industry was concerning and that the company was monitoring it, literally, hour by hour.
Tyson chairman John Tyson said last weekend: As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain. As a result, there will be limited supply of our products available in grocery stores until we are able to reopen our facilities that are currently closed.
(snip)
I actually fear getting Covid from the restuarants. I simply do not trust their processes.....or lack thereof. Nor their personnel, especially.
Our Starbucks just closed down from the virus.
Amusing that thet actually used “soylent.” I guess it will be slow poisoning without the pleasant music. :)
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