US Tyson Foods Warns "Meat Supply Chain Is Collapsing"

Factory Closures Continue Amid COVID-19 Spread... Tyson Chairman Appeals to WP and Others

Delivery Difficulties for Livestock Farms Threaten the Death of Millions of Cattle and Pigs

▲Tyson Foods' Waterloo plant shut down due to COVID-19 confirmed cases [Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] John Tyson, chairman of Tyson Foods, the largest meat processing company in the United States, has issued a warning about the collapse of the food supply chain. Concerns over supply-demand imbalances are growing as meat processing plants are closing one after another due to the spread of the novel coronavirus infection (COVID-19).

According to the Washington Post (WP) and the New York Times (NYT) on the 27th (local time), Chairman Tyson recently expressed in an appeal published in these media outlets, "Pork, beef, and chicken processing plants are closing," and voiced concerns that "millions of pounds of meat will disappear from the food supply chain." He added, "We have a responsibility to supply food, and this is an issue as important as public health." Chairman Tyson urged authorities to take measures, warning that factory shutdowns will lead farms to reduce livestock rearing scales and consumers to face price burdens.

The supply chain collapse began with the suspension of operations at processing plants. Major U.S. meat processors, including Tyson Foods, have indefinitely halted operations one after another after COVID-19 cases were confirmed among their employees. Tyson Foods has closed two pork plants in Waterloo, Iowa, and Logansport, Indiana, as well as a beef plant in Pasco, Washington. In addition to Tyson Foods, Smithfield Foods' plant in Sioux Falls, South Dakota, and JBS's plant in Worthington, Minnesota, are also closed. These three companies account for 15% of the U.S. pork market. In the case of beef, the closure of Tyson Foods plants alone has cut off 14% of supply. The International Union of Food Workers stated that beef and pork supply in the U.S. market has decreased by 25% due to plant closures.

The impact of factory shutdowns is affecting livestock farms responsible for supply. As deliveries from farms become difficult, millions of cattle and pigs are facing the risk of death. Bloomberg reported that "pig farms in Minnesota will cull 200,000 pigs within a few weeks." Some livestock farms have already begun euthanizing pigs. As a result, supply is inevitably significantly reduced compared to demand.

Slaughtering to supply the market has also greatly decreased. The U.S. Department of Agriculture announced on the 24th that the total number of cattle slaughtered by meat processing plants in the first quarter was 83,000, a decrease of more than 25% compared to the same period last year. Pigs also decreased by nearly 20%, from 449,000 in the first quarter of last year to 361,000 this year. When supply decreases, supply-demand imbalances are inevitable. The U.S. Food and Drug Administration (FDA) recently acknowledged that there may be supply shortages in some products.

This content was produced with the assistance of AI translation services.