The COVID-19 pandemic has disrupted production at U.S. meatpacking plants, leading to higher prices and scarcity for popular items like ground beef and chicken breasts in supermarket meat cases. Grocers, seeking to prevent panic buying, have begun limiting purchases and say they are preparing for intermittent shortages through May if not longer.
Major grocers, including Kroger and Costco, added purchase limits this week for meat to prevent hoarding and help keep it in stock.
The impact is being felt by local businesses, as well. Kyle Stanton of Country Foods in Kenai discusses his observations of results of the supply chain being disrupted: “There are a few complications going on with some of the plants, but for the most part, they’re all up and running. They’re taking care of business. Some of them have less labor than they usually do, so they’re output is less than normal. There is a continued availability of meat on the peninsula. For the most part, there is a meat crisis going, but I wouldn’t call it a crisis because they’re taking care of business down there. The plants, they’re working hard to get product to Americans.”
He also offers insight on the anecdotal changes he has noticed when it comes to meat sales at Country Foods: “Any week, we will move about 10,000 – 12,000 pounds of protein, but I’m not concerned about any particular shortage altogether. There’s intermittent shortages from here and there with certain cuts, but I think that’s due to the fact that there’s less labor working in the processing plants to get it done. So, as far as pork is concerned, we’re going to see more bone-in cuts opposed to the boneless cuts for a little bit until people can get back to work and fill the factories up and get those processing plants back full and running.”
Some restaurants are feeling the crunch, while others are not as much. Nearly a fifth of Wendy’s U.S. restaurants removed hamburgers and other beef products from their online menus. Another chain, Shake Shack, said rising beef prices have taken a bite into its profits.
McDonald’s, on the other hand, says they’re in good shape, but they’re taking it day-to-day. Chris Kempczinski, C.E.O. of McDonald’s: “We’ve got an amazing group of suppliers, an amazing supply-chain team. The amazing thing for us, really, what’s been incredible is that through this entire pandemic, we have not had a supply-chain break anywhere in all 40,000 restaurants around the globe. We’re watching very closely, this meat-supply issue. It’s particularly an issue with beef. Right now, we feel good about our situation, but it really is a day-to-day status and we’re monitoring it.”