...Now, as several of the nation's largest meat processing plants have been forced to temporarily close due to the coronavirus pandemic, meat producers are warning of potential shortages if the crisis continues to disrupt operations for an extended period of time. On Sunday, Smithfield Farms, one of the nation's largest pork producers, announced it was closing one of its meat processing plants
in South Dakota. But it wasn't just any plant. This particular facility
in Sioux Falls is responsible for 4-5% of all U.S. pork production
(according to figures provided by the company). It will be closed for at
least two weeks. The closure comes after at least 300 of the facility's 3,700 employees
tested positive for the novel coronavirus. The Virginia-based company is
owned by China's WH Group, which is the world's largest pork producer,
supplying meat for brands like Smithfield and Nathan's Famous. "Prior to March, a large percentage of pork products were produced and sold to restaurants," Julie Niederhoff, associate professor of Supply Chain Management at Syracuse University, told TODAY. "This left a fairly stocked pork supply chain where the the temporary closure of one plant isn't likely to impact consumers nearly as much as it impacts farmers."
Niederhoff is currently predicting a minor short term impact on the price and availability of pork. But that's only if the plant is closed for a few weeks. A longer closure could be detrimental if there's a domino effect throughout the company, she said.
"Nearly 60% of pork is processed in 15 plants all in close geographic proximity to this Smithfield plant," Niederhoff said. If COVID-19 forces more plants in the area to close, "consumers would definitely feel it." Many farmers and industry workers are already
feeling it. According to the U.S. Department of Agriculture, meat
manufacturing beats out dairy, grains, beverages and produce to account
for the largest sector of food and beverage manufacturing in the U.S. The industry is comprised of nearly 500,000 workers. On Monday JBS USA announced it was closing its Greeley, Colorado, beef plant
indefinitely and sending 6,000 employees home to self-quarantine. At
least two people who worked at the plant have died from COVID-19 since
March and dozens more have tested positive. According to Kerns and Associates, the plant processes about 5% of the total daily beef slaughter in the U.S. Tyson Foods Inc. and Cargill Inc. have also recently closed plants after workers tested positive for coronavirus. Meanwhile, 50 workers at a Perdue plant walked out on the job
after claiming they were exposed to the virus. These events aren't
limited to one geographical area, either. Meat processing plant closures
are happening in Georgia, Pennsylvania and Iowa, among other states. According to a report
published in March by the Food and Agriculture Organization of the
United Nations, the U.S. isn't the only country potentially facing
different types of food shortages. Many countries are dealing with
decreasing labor forces and logistics problems in their supply chains.
For example in Argentina, road blocks are not only preventing the spread
of the virus, they're preventing trucks carrying crops from making
deliveries. Other countries like Vietnam and Russia are hoarding crops that would otherwise be exported. Despite Smithfield's latest efforts, on Monday — the same day the company announced it was donating $30 million worth of meat to food banks — six employees at a plant in Pennsylvania reportedly tested positive for coronavirus, Pittsburgh's KDKA reported. Some
experts say it's likely that more employees who process all types of
food, not just meat products, will test positive in the coming weeks. "This crisis emphasizes the need to modernize
our entire agriculture and food system with state-of-the art
technologies that decrease reliance on a precarious labor force," said
Patrick J. Stover, vice-chancellor and dean of agriculture and life
sciences at Texas A&M AgriLife. Scenes
of emptying shelves may worry consumers, but Stover told TODAY there is
not a shortage of food itself. Empty shelves seen currently are the
result of panic buying and he predicts that will taper off as the crisis
abates on some parts of the country...MORE
HT: Luke Shipp
HT: Luke Shipp
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