Top Pork Producer Warns of Meat Shortfall as It Shuts Key Plant
By
Isis Almeida
and
Matt Day Updated on April 12, 2020, 1:36 PM EDT
Smithfield Foods Inc. will idle its Sioux Falls, South Dakota, pork-processing facility, which accounts for 4% to 5% of U.S. production, the company said in a statement Sunday. The move comes after state officials reported more than 200 cases of Covid-19 for plant employees, adding to a spike in infections that’s seen hundreds of American meat workers get sick. Plants have been forced to shutter or reduce output.
“The closure of this facility, combined with a growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply,” Smithfield’s Chief Executive Officer Ken Sullivan said in the statement. “It is impossible to keep our grocery stores stocked if our plants are not running.”
While it’s unclear whether the meat-employee infections have anything to do with the workplaces, the news exposes the vulnerability of global supply chains that are needed to keep grocers stocked after panic buying left shelves empty. The shuttered plants and sick workers are adding to other disruptions caused by the virus that’s making it harder for food to get from farm to table. Trucking bottlenecks, and snarled port traffic have also contributed to why shoppers are seeing empty shelves.
.....
....“Unfortunately, Covid-19 cases are now ubiquitous across our country. The virus is afflicting communities everywhere. The agriculture and food sectors have not been immune,” Sullivan said. “We have continued to run our facilities for one reason: to sustain our nation’s food supply during this pandemic.”
Workers in other points of the food-supply chain have also started to get sick. In all likelihood, the number of cases will keep going up at meat plants, farms, warehouses and packaging factories across the globe. That’s pointing to an acute contradiction between the need to keep people safe, while also ensuring that the world has enough food.
....
Still, there is a risk to continued production. When a worker gets sick, the employee and every person they’ve come into contact with has to be quarantined. Plants also needs to close for deep cleanings. A Cargill Inc. plant in Pennsylvania has also been closed temporarily because of an outbreak among employees.
Hundreds of U.S. Meat Workers Have Now Tested Positive for Virus
Some companies also had to slow down plants that are set up to supply restaurants, instead of supermarkets. Sanderson Farms Inc., the U.S.’s third-largest chicken processor, said earlier this month that it would run plants that process big birds for the food-services industry “well below capacity,” according to CEO Joe Sanderson.
....
If more cases mount and an increasing number of plants are forced to idle, it’s difficult to say what the tipping point will be in terms of supply shortfalls.
“We have a stark choice as a nation: we are either going to produce food or not, even in the face of Covid-19,” Sullivan said.
https://www.bloomberg.com/news/artic...virus-concerns
By
Isis Almeida
and
Matt Day Updated on April 12, 2020, 1:36 PM EDT
- Smithfield closes South Dakota pork facility after virus cases
- ‘Impossible’ to keep grocers stocked if plants are shut: CEO
Smithfield Foods Inc. will idle its Sioux Falls, South Dakota, pork-processing facility, which accounts for 4% to 5% of U.S. production, the company said in a statement Sunday. The move comes after state officials reported more than 200 cases of Covid-19 for plant employees, adding to a spike in infections that’s seen hundreds of American meat workers get sick. Plants have been forced to shutter or reduce output.
“The closure of this facility, combined with a growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply,” Smithfield’s Chief Executive Officer Ken Sullivan said in the statement. “It is impossible to keep our grocery stores stocked if our plants are not running.”
While it’s unclear whether the meat-employee infections have anything to do with the workplaces, the news exposes the vulnerability of global supply chains that are needed to keep grocers stocked after panic buying left shelves empty. The shuttered plants and sick workers are adding to other disruptions caused by the virus that’s making it harder for food to get from farm to table. Trucking bottlenecks, and snarled port traffic have also contributed to why shoppers are seeing empty shelves.
.....
....“Unfortunately, Covid-19 cases are now ubiquitous across our country. The virus is afflicting communities everywhere. The agriculture and food sectors have not been immune,” Sullivan said. “We have continued to run our facilities for one reason: to sustain our nation’s food supply during this pandemic.”
Workers in other points of the food-supply chain have also started to get sick. In all likelihood, the number of cases will keep going up at meat plants, farms, warehouses and packaging factories across the globe. That’s pointing to an acute contradiction between the need to keep people safe, while also ensuring that the world has enough food.
....
Still, there is a risk to continued production. When a worker gets sick, the employee and every person they’ve come into contact with has to be quarantined. Plants also needs to close for deep cleanings. A Cargill Inc. plant in Pennsylvania has also been closed temporarily because of an outbreak among employees.
Hundreds of U.S. Meat Workers Have Now Tested Positive for Virus
Some companies also had to slow down plants that are set up to supply restaurants, instead of supermarkets. Sanderson Farms Inc., the U.S.’s third-largest chicken processor, said earlier this month that it would run plants that process big birds for the food-services industry “well below capacity,” according to CEO Joe Sanderson.
....
If more cases mount and an increasing number of plants are forced to idle, it’s difficult to say what the tipping point will be in terms of supply shortfalls.
“We have a stark choice as a nation: we are either going to produce food or not, even in the face of Covid-19,” Sullivan said.
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