Virus is expected to reduce meat selection, raise prices
DES MOINES, IOWA » Meat isn’t going to disappear from supermarkets because of outbreaks of the coronavirus among workers at U.S. slaughterhouses. But as the plants struggle to remain open, consumers could face less selection and slightly higher prices.
Industry leaders acknowledge that the U.S. food chain has rarely been so stressed and that no one is sure about the future, even as they try to dispel concerns about shortages.
On Sunday, the meat processing giant Tyson Foods ran a fullpage advertisement in the New
York Times and other newspapers outlining the difficulty of producing meat while keeping more than 100,000 workers safe and shutting some plants.
“This means one thing — the food supply chain is vulnerable,” the statement said. “As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain.”
Company spokesman Gary Mickelson said the Tyson family thought it was important to explain their perspective.
“The letter encourages government leaders to unite to address
food supply chain challenges,” Mickelson said. “We are taking a proactive approach to balance safety and production by moving aggressively with testing and plant closures when necessary.”
COVID-19, the disease caused by the virus, has infected hundreds of workers at meat-processing plants and forced some of the largest to close and others to slow production. While the output at beef and poultry plants has diminished, pork plants in the Midwest have been hit especially hard. The outbreaks have persisted despite efforts by the companies to keep workers at home with pay if they become sick.
The 15 largest pork-packing plants account for 60 percent of all pork processed, so when even one of those plants closes for days or weeks, the consequences ripple across the industry. That has become abundantly clear with two of the nation’s biggest plants now closed: Tyson suspended operations at its plant in Waterloo, Iowa. And Smithfield Foods halted production at its plant in Sioux Falls, South Dakota. Each plant can butcher nearly 20,000 hogs a day. Some plants have reopened days after cleaning.
The result is that the nation’s pork processing capacity had declined by about 25% as of last week, said Steve Meyer, an industry economist with Kerns and Associates in Ames, Iowa.
Sarah Little, a spokeswoman for the North American Meat Institute, an industry trade group, said: “It’s down across the board right now, so the next couple of weeks we should see how the system works. It’s never been tested like this before.”
Nationally, expectations are that the increases will be slight. The U.S. Department of Agriculture said late last week that it expects beef prices to climb 1% to 2% this year, poultry as much as 1.5% and pork between by from 2% and 3%.
The agency acknowledged that consumer buying patterns change weekly and that some products face supply-chain disruptions that could affect prices. But the USDA said its planned $3 billion purchase of fresh produce, dairy and meat should help stabilize prices. The government will work with food distributors to provide the purchased products to food banks, community and faith-based organizations and other nonprofits serving the needy.