April 15, 2020

 

Stock shortage fears arise as US meat plants shut down

 

 

Concerns on shortages of beef, pork and poultry supply in supermarkets may soon arise after some massive meat processing plants have closed at least temporarily because their workers were sickened with COVID-19.

 

The meat supply chain is especially vulnerable since processing is increasingly done at massive plants that butcher tens of thousands of animals daily, so the closure of even a few big ones can quickly be felt by customers. For instance, a Smithfield Foods plant that was forced to close in Sioux Falls, South Dakota, after nearly 300 of the plant's 3,700 workers tested positive for the virus produces roughly 5% of the US pork supply each day.

 

In addition, conditions at plants can be ripe for exploitation by the virus: Workers stand shoulder-to-shoulder on the line and crowd into locker rooms to change their clothes before and after shifts.

 

The virus has infected hundreds of workers at plants in Colorado, South Dakota, Iowa, Pennsylvania, Mississippi and elsewhere. The capacity of plants that remain open has also been hurt by workers who are sick or staying home because of fears of illness—though it is not clear by how much.

 

While company owners promise to deep clean their plants and resume operations as quickly as possible, it is difficult to keep workers healthy given how closely they work together.

 

"There is no social distance that is possible when you are either working on the slaughter line or in a processing assignment," said Paula Schelling, acting chairwoman for the food inspectors union in the American Federation of Government Employees.

 

The reduced production so far has been offset by the significant amount of meat that was in cold storage, said Glynn Tonsor, an agricultural economist at Kansas State University. Producers are also working to shift meat that would have gone to now-closed restaurants over to grocery stores.

 

Whether shoppers start to see more empty shelves or higher prices will depend on how many plants close and for how long.

 

At least half a dozen plants have closed temporarily, but that is across the pork, chicken and beef sectors, and Tonsor said the industry can manage for now.

 

"You could shut multiple plants down for a day or two, and we've got wiggle room to handle that," said Tonsor. "But if you took four or five of those big plants, and they had to be down for two weeks, then you've got a game changer."

 

Still, the reduced meat processing capacity is already driving down the prices farmers and ranchers receive for cattle, hogs and chickens.

 

Tyson, Cargill and other major meat processing companies say they are adopting several measures: taking the temperature of everyone entering plants, adding clear plastic shields between work stations and erecting tents to allow workers to spread out more at lunch. But critics worry that workers too often continue working in close proximity and that measures are being adopted piecemeal.

 

Other meat companies say they have stepped up the cleaning of their plants and prohibited visitors. Several major meat companies are also paying workers more for continuing to work during the pandemic. For instance, JBS USA is paying workers a one-time US$600 bonus. Cargill has temporarily boosted pay by US$2 an hour.

 

Most major meatpacking companies also have relaxed attendance and sick leave policies to ensure that workers can receive at least some pay if they have to stay at home after testing positive or coming in contact with someone who has.