Updated: Apr 16, 2020
Since the Government mandated shutdowns across the nation and the globe, farmers have felt an extreme impact. They are being forced to destroy excess crop due to the drastic fall in demand by their local buyers. The cost to destroy the crop is far more favorable than rerouting the supply chains.
Other staples like beans, grains and rice are in thin supply due in part to the restrictions on exports internationally.
Grocery store chains are seeing a massive influx of consumers and revenue since most meals are being prepared at home. But, this is causing a shortage in inventory for the local Food Banks, which are needed more than ever due to the increasing unemployment rate. Most Food Banks rely heavily on grocery store donations, but have not received their normal supply because shelves are being wiped clean at the grocery stores.
The supply chain has taken a hit as a whole, as large meat processors across the nation have been forced to close their operations. Product variety will shrink due to the drop in processing options. “Consumers like to have a lot of different choices, and the reality is in the short term, we just don’t have the labor to make that happen,” Rabobank meat industry analyst Christine McCracken told New York Times.
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