Attention Economy


Monday, April 13, 2020

Supply-Demand Mismatch and the US Food Supply Chain

Mountains of food wasted as coronavirus scrambles supply chain
“As US food banks handle record demand and grocery stores struggle to keep shelves stocked, farmers are dumping fresh milk and plowing vegetables back into the dirt as the shutdown of the food service industry has scrambled the supply chain. Roughly half the food grown in the US was previously destined for restaurants, schools, stadiums, theme parks and cruise ships.
Agriculture officials insist that the supply itself is not in question, but matching that supply with demand and getting it to where it’s needed most is a new and urgent problem….
The loss of food service business, particularly schools systems that are large buyers of dairy products, has left producers with a highly perishable glut that they can’t easily resolve. Preparing and packaging food for retail as opposed to wholesale, and getting it packed and shipped on trucks, is an entirely new and expensive problem”.

Related:
Farmers Dump Milk, Break Eggs as Coronavirus Restaurant Closings Destroy Demand