CoBank Warns Current Meat Shortage Has Long-term Impacts

DENVER, CO – Though Agriculture Secretary Sonny Perdue told reporters on Wednesday that current meat shortages will end within ten days, a new report suggests there will be long-term impacts. As U.S. packing plants slowed or closed during April due to the coronavirus, it led to a massive bottleneck in the nation’s meat and livestock supply chain. According to CoBank’s Knowledge Exchange division, even if the reduction of processing capacity is temporary, it will likely have a lasting impact on meat processors, livestock producers, retail stores, and consumers. Meat supplies for retail grocery stores could shrink nearly 30 percent by Memorial Day, leading to 20 percent higher prices compared to just one year ago. Will Sawyer, lead animal protein economist with CoBank adds that “shrinkage in the U.S. livestock herd will likely make the food supply shortage more acute later in the year.” While pork processing is expected to pick up, hog producers may still be forced to euthanize as many as seven million pigs in this quarter alone. Grocery stores are likely already rationing their current meat supplies, he explains, as the supply chain and inventory from the packing plant to the local grocery case is less than a few weeks.