Storms, power outages hobble food supply
Grocery chains forced to close some stores
A series of winter storms and widespread power outages gripping Texas and other states not used to such extreme low temperatures are creating challenges in the nation’s food supply networks.
Grocery chains like Walmart and Publix were forced to close some stores either because of lack of power or lack of workers. At locations that remain open, customers complain of long lines outside and then empty shelves once brimming with water, bread and milk when they get inside. Texas grocery chain HE-B closed some stores and is limiting customer purchases of items like brisket and propane tanks.
The power outages have caught plenty of people unprepared, like Jon Reilly, who said he always keeps a month’s supply of canned food on hand for hurricanes. But on Wednesday, his daughter and wife waited 20 minutes in line outside of a grocery store in Corpus Christi, Texas, only to come out with bread and water. They found no milk, cheese or meat. He’s also running low on propane, which he’s using to power up the outdoor grill for cooking.
“We thought it was going to be cold,“said Reilly. “We didn’t expect to not have power for a week.”
Grocery retailers in Texas and in other parts of the South are used to hurricanes that can force them to shut down for a few days. But this week’s massive winter storms are wider reaching, wreaking havoc on roads and the entire transportation infrastructure. The coronavirus pandemic is only exacerbating the issue as stores have to limit the number of customers.
Michael Zimmerman, a partner in the strategic operations practice of global management consulting firm Kearney, predicts it will take another two weeks before grocery shelves in the affected areas “look normal” again. He noted that grocery chains run a very efficient operation, keeping in stock what they need and relying on continuous flows of deliveries. But that can backfire in situations like snowstorms and power outages when it helps to have the extra inventory.
“Supermarkets just don’t have room, even if they could store garlic for three years,” he said.
Food suppliers are having to scale back their operations or close down farms and plants because of the outages. Texas Agriculture Commissioner Sid Miller issued a red alert earlier this week, noting he’s getting calls from farmers and ranchers across the state reporting that the interruptions in electricity and natural gas are having a “devastating effect on their operations.”
In just one example, dairy operations are dumping $8 million worth of milk down the drains every day because the plants that process that milk don’t have power, Miller cited in his statement.
“We’re looking at a food supply chain problem like we’ve never seen before, even with COVID-19,” he said.
The supply problems have extended to food banks, hampering their ability to feed those most in need. Celia Cole, the CEO of hunger-relief organization Feeding Texas, said most of the 21 food banks the organization runs across the state have been closed due to the weather, power issues or people being unable to come into work.