Labor Challenges Leading Increase in Food Supply Automation

DENVER, CO – As many employers across the country continue to struggle with labor issues, primarily the lack of an available and willing workforce, those planning to return to some jobs in the future will find their positions gone.

According to a new Quarterly report from CoBank’s Knowledge Exchange, labor challenges felt during the pandemic and continuing today will incentivize businesses throughout the food supply chain to rapidly increase automation within their operations.

Dan Kowalski, vice president of CoBank’s Knowledge Exchange division says he expects this will affect the entire supply chain from field to grocery and restaurants. “It won’t be an overnight transformation, but much larger investments in technology now will lead to a much more automated supply chain over the next few years.”

That’s not the only challenge on the horizon as commodity price inflation has been a boon to many ag producers over the past year, but increases in raw material and transportation costs, combined with higher wages, are causing retailers to push those higher costs on to consumers.

Though many consumers in the U.S. have enjoyed very low food inflation for much of the past decade, higher prices are a near certainty for the next year.
(SOURCE: All Ag News)