Meat+Poultry - June 2020 - 58

SPECIES FOCUS: POULTRY

More than 20 processing plants temporarily
shut down - the number changed regularly as some
facilities re-opened and others closed for disinfecting
and the installation of enhanced safety equipment
such as Plexiglas barriers at workstations. The
closings included some plants operated by the largest
meat processors: Smithfield Foods Inc., Cargill, JBS
USA, Tyson Foods Inc. and others. Furthermore,
fewer workers were placed on processing lines to
enforce social distancing which caused reductions in
line speeds and processing capacity.

CONSUMPTION TRANSFORMATION
In the early aughts of the pandemic, government
issued shelter-in-place orders changed where
consumers dined and the foods they purchased.
These changes in consumption habits had knock-on
effects in the food supply chain. More consumers
preparing meals at home, eating leftovers and
favoring non-perishable and frozen poultry items
emerged as a dominant trend.
Rabobank, in its report, said some supply chain
issues would persist and impact supply and demand
for poultry despite the world returning to economic
growth in 2021. However, poultry is the protein
consumers turn to during economic slowdowns
because of lower prices compared to red meat.
"Consumer behavior will shift towards more
at-home consumption impacting poultry demand in
some markets like China and the US, where poultry
has a relatively large share of foodservice demand,"
the report said. "This means that companies with
good access to food retail will benefit, while
foodservice suppliers are impacted. The shift towards
more home delivery could receive an additional push,
with this industry capturing market share in poultry
and meat distribution."
The long-term impact of this shift to retail from
foodservice on supply chains is unclear. McCracken
said a few food companies have said publicly that
they intend to make the shift to more retail and
less foodservice.
"It is a pretty big shift, and you'd have to be sure
that if you were going to make that kind of shift,
it's going to be for the long term," McCracken said.
"There's a pretty big investment around that, not just
from a capital perspective, [but] in terms of your
customer base. I think if you were already involved in
both sides and were able to shift some of your birds,
it's possible. But I'm skeptical.
"The reality is a lot of those operations, the
segments of the foodservice industry that they serve,
should come back. You think about it they're a quick

58

MEAT+ POULTRY | 06.20 | www.meatpoultry.com


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Meat+Poultry - June 2020

Table of Contents for the Digital Edition of Meat+Poultry - June 2020

Meat+Poultry - June 2020 - 1
Meat+Poultry - June 2020 - FC - 1
Meat+Poultry - June 2020 - FC - 2
Meat+Poultry - June 2020 - 1
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