Page 6 - MWC 4-23-20s

Meat Production Threatened

The Midwest Cattleman · April 23, 2020 · P6

with Disruption By Derrell Peel - Oklahoma State University

poultry are si- tion facilities, or even dispos-
multaneously al of animals.
threatened as Such disruptions could
COVID-19 in- result in reduced flows of
fections affect fresh meat to consumers,
labor avail- compounded by the continu-
ability and ing bottlenecks created by lower.
processing the drastic reduction in the The impacts may already
capacity in food service sector, roughly be showing up in the beef
multiple fa- half of total food distribu- industry. Estimated cattle
cilities across tion. Since early March, those slaughter for the week ended
all meat in- bottlenecks resulted in limit- April 11 was 536,000 head,
dustries. ed meat availability in retail down over 14 percent from
Reduced grocery despite an ample sup- the previous week and near-
processing ca- ply of meat production. ly 16 percent lower than the
pacity could The next few weeks could same week last year. The re-
cause back- result in continuing shortag- ductions include both year-
ups in live an- es of meat at retail grocery ling (steer and heifer) slaugh-
imal supplies due to a short-run reduction ter as well as cow and bull
if animals in processing capacity and re- slaughter with both catego-
cannot be duced supplies of all meats. ries down double digits year
processed in Wholesale and retail meat over year for the week.
The U.S. meat industry a timely fashion. The severity prices may be pushed higher This predicament could
faces unprecedented threats of impacts will depend on spe- as a result of limited supply. result in a situation not pre-
as COVID-19 sweeps through cific situations and locations At the same time, limited pro- viously seen in the beef in-
labor forces at meat process- but could include costly de- cessing capacity may limit de- dustry. It may simply not
ing facilities nationwide. lays in holding animals until mand for slaughter animals
Production of beef, pork and slaughter, backlogs in produc- and push farm level prices continued on page 20

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