US Agriculture sector plowing crops back into ground as Food Service sector demand drys up. ?
A whole seasons crop is being plowed back into the ground as demand that cannot be picked up by supermarkets goes to waste.
The supply chain the for Food Service Industry has fully bullwhipped as demand from fast food, restaurants and cafes has dried up.
The blow back is their primary suppliers, farmers have no market from their crops.
So they have to plow it back into the soil and wear the loss.
Downstream, food service warehouses are full of food, slowly going out of date, with no market and no capacity to take in more stock.
So what happens when things get back to normal?
What happens to the ten million or so thrown outa work in the front line of this disruption working in food service?
No or limited supply means they stay unemployed.
This is gonna be bad!
I'd like to hear opinions back from the more intelligent YA! Politics users rather than the usual Trolls.
And yes, when I say more intelligent users I do include you, Ed Winter.
- random_manLv 72 months agoFavorite Answer
COVID has turned the food supply chain upside down.
Prior to the virus, about 50% of food consumed in the US, was outside the home (restaurants, institutional, schools, etc). That market virtually evaporated overnight.
Farming is, in general, a low-margin business. You can't afford to produce something at a loss if you want to survive.
Additionally, the products are perishable, and they are ready when they are ready - not necessarily when you want or need them. For example vegetables, need to be picked on their ready date. Delay that and they are worthless.
Farmers aren't stupid. For products that there are markets for, they are still producing and selling them. And they're shifting as fast as they can to meet market demand. But for products where the market has evaporated? Yes, they're going to waste. Some is being donated, but that's not always possible.
As far as what happens when things return to "normal"? Well, that will probably happen gradually, and the system will adjust. I wouldn't worry about food shortages.
Our production systems have always been more likely to over-produce than under-produce.
But sure, right now, some farmers are taking a beating. Dairy farmers in particular.
- Anonymous2 months ago
That’s true. Germany had to fly in workers to make sure all the people have food to eat.
- Anonymous2 months ago
Democrats really hurt all Americans.