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"The supply chain is breaking"

BUTCH1

Lifer
In a full page ad in the NYT and WP the chairman of Tyson foods said "the supply chain is breaking" because as processing plant shutter farmers have nowhere to sell the livestock too
https://www.washingtonpost.com/cont...28-ad80-0e679dcd2669/?itid=lk_inline_manual_2
I work at a full-line distributor, strange things have been happening too, a sudden run on briskets and chuck shoulder clod, (which we usually just use for hamburger). Pricing has been all over too, I usually pay $2.20/lb for a 10lb tube of 80/20 Angus, I got one Friday, $3.55lb. Choice Tenderloin can be had for $6.50/lb, with restaurants across the country closed there's little call for them right now. Keep an eye on this one boys, if anymore news gets passed on to me I'll post back.
 
I've noticed it in our industry to. Wholesalers were forced to sell what they could but with little demand due to closed greenhouses they were forced to either dump their first crops and start over or sell them at cheaper prices. Now that certain markets like Illinois are starting to open up again on May 1 there is a shortage of certain items like vegetables and herbs.

I searched the entire State of Michigan for 4-pack Better Boy tomatoes and almost couldn't find any. There was a little place we rarely deal with that had 10 flats available so I snatched them up. 10 flats won't even last me the weekend let alone all next week before I can place another order.
 
I've noticed it in our industry to. Wholesalers were forced to sell what they could but with little demand due to closed greenhouses they were forced to either dump their first crops and start over or sell them at cheaper prices. Now that certain markets like Illinois are starting to open up again on May 1 there is a shortage of certain items like vegetables and herbs.

I searched the entire State of Michigan for 4-pack Better Boy tomatoes and almost couldn't find any. There was a little place we rarely deal with that had 10 flats available so I snatched them up. 10 flats won't even last me the weekend let alone all next week before I can place another order.
Supply chains don't have high regard for excess inventory, specially nowadays with computerization able to predict future orders and current inventory at a glance, this might get dicey.
 
These supply chains... while very well defined and very well managed for efficient production are great... the problem is that they are horrible for evolving or adapting on-the-fly. Right now they essentially have to cut any commercial-grade production by 90% and instead move that 90% to consumer production. That means, huge packs that they typically send-off to restaurants, etc... need to stop and instead ramp up consumer production for grocery stores. Easier said than done - but to be honest, it really shouldn't be that difficult in this day of age.

It really isn't that complicated, I'm a lover of craft beer as an example - breweries should be stopping any and all production on kegs and instead putting all production into store bottles/cans. The answer isn't that complicated - the problem is that changing your distribution and factory production on the fly is complicated.
 
It really isn't that complicated, I'm a lover of craft beer as an example - breweries should be stopping any and all production on kegs and instead putting all production into store bottles/cans. The answer isn't that complicated - the problem is that changing your distribution and factory production on the fly is complicated.
We should all do our part by buying kegs.
 
These supply chains... while very well defined and very well managed for efficient production are great... the problem is that they are horrible for evolving or adapting on-the-fly. Right now they essentially have to cut any commercial-grade production by 90% and instead move that 90% to consumer production. That means, huge packs that they typically send-off to restaurants, etc... need to stop and instead ramp up consumer production for grocery stores. Easier said than done - but to be honest, it really shouldn't be that difficult in this day of age.

It really isn't that complicated, I'm a lover of craft beer as an example - breweries should be stopping any and all production on kegs and instead putting all production into store bottles/cans. The answer isn't that complicated - the problem is that changing your distribution and factory production on the fly is complicated.
While some items like chicken for example are packed for the wholesale market in 40lb or 20lb boxes, it's the same chicken you are buying in a retail location. Boxed beef is a different thing, it's sold in what's called "primal" cuts, ex. striploin, prime rib, shortloin, top round. These are then processed into steaks/roast's you buy in a grocer, for the restaurant industry they will also use these primal cuts and cut their own steaks, both are sourcing from the same plant's, the problem that's arising is many plants that slaughter and produce these primal cuts are going offline due to infected workforce.
 
It's going to be interesting and something to keep an eye on. Personally, I don't think the impact will be severe for us retail consumer. I've noticed the grocery stores are pretty much back to normal as far as meat with the fridges full to the brim with chicken, beef, and pork. As long as people don't suddenly rush out and start hoarding meat, I think we'll be fine. I didn't read the ad but maybe his goal is to cause panic and hoarding of meat.

I'm not worried. I have hundreds of pounds of beef, chicken, and pork stored in my freezers. Most of the time, I buy primal cuts and cut my own. There are so many online suppliers now I can use them if need be. Plus, there's supposed to be over 2 billion pounds of meat in cold storage. I doubt much meat is being exported these days so if our domestic supply runs low, they can always release some more meat from storage.
 
Interesting, thanks for the Info @BUTCH1. Dairy farmers are also dumping milk in huge quantities because of huge demand declines.
Again, not so much demand declines. The supply chain and distributors that they are used to selling to don't need it.

They don't have the supply chain to switch to grocery store containers (gal and half gal, etc)... And they don't have relationships with non-restaurant distributors to quickly transition and say "come pickup at our location and buy it!" Also commercial uses a lot more butter than milk.
 
It's going to be interesting and something to keep an eye on. Personally, I don't think the impact will be severe for us retail consumer. I've noticed the grocery stores are pretty much back to normal as far as meat with the fridges full to the brim with chicken, beef, and pork. As long as people don't suddenly rush out and start hoarding meat, I think we'll be fine. I didn't read the ad but maybe his goal is to cause panic and hoarding of meat.

I'm not worried. I have hundreds of pounds of beef, chicken, and pork stored in my freezers. Most of the time, I buy primal cuts and cut my own. There are so many online suppliers now I can use them if need be. Plus, there's supposed to be over 2 billion pounds of meat in cold storage. I doubt much meat is being exported these days so if our domestic supply runs low, they can always release some more meat from storage.
With beef primal cuts yes, they can be frozen and for quite a long time due to cryo-vac storage, BUT many grocers and restaurants don't like/won't take previously frozen beef. Your "online suppliers" will kill you in shipping cost, it's not practical to send a 12.5lb striploin through the mail or UPS. Of course 2 and 3 day shipping might suffice IF it was properly packed with dry ice, again, the shipping cost's would be almost the price of the meat.
 
Again, not so much demand declines. The supply chain and distributors that they are used to selling to don't need it.

They don't have the supply chain to switch to grocery store containers (gal and half gal, etc)... And they don't have relationships with non-restaurant distributors to quickly transition and say "come pickup at our location and buy it!" Also commercial uses a lot more butter than milk.
We sell milk by the gallon to many restaurants, (well, when they were open we did.) It's still used in many recipes, soups, desserts, milkwash, ect.
 
With beef primal cuts yes, they can be frozen and for quite a long time due to cryo-vac storage, BUT many grocers and restaurants don't like/won't take previously frozen beef. Your "online suppliers" will kill you in shipping cost, it's not practical to send a 12.5lb striploin through the mail or UPS. Of course 2 and 3 day shipping might suffice IF it was properly packed with dry ice, again, the shipping cost's would be almost the price of the meat.
I've ordered from Creekstone Farms and long as you stick with what's on sale, cost is not too bad. And I was at Costco today and they had plenty of USDA Prime packer briskets for $2.99 /lb. As many as I wanted. Usually by this time of the year, Prime brisket prices are closer to $4 than $3. But with so many BBQ restaurants closed or only doing little business, who's going to use all these briskets? Normal people do not buy packer briskets and have no idea what do with it.

I'm more worried about pork than beef. Pork is cheaper so that increases the pool of shoppers I have to compete with. Not too many people will buy $150 to $200 primal cut of beef ribeye. Same with many other primal cuts of beef. But they will buy $25 pork butt or pork ribs. And I can't wet age pork like I can beef so I have to use it quickly or else freeze it. Freezer space is limited more than fridge space.
 
the cool thing about livestock is that, it's alive, you *don't* have to kill it, you can just let it stick around.

next month we're gonna have suuuuuper big chickens at the store.
 
I searched the entire State of Michigan for 4-pack Better Boy tomatoes and almost couldn't find any. There was a little place we rarely deal with that had 10 flats available so I snatched them up. 10 flats won't even last me the weekend let alone all next week before I can place another order.
Every year I buy a 6 pack of tiny Early Girl tomatoes. This year I stopped by the usual nursery where I buy them a couple times while riding back from my gym and they didn't have them yet even though the weather was unusually warm and dry. Typically they would have them in those conditions, but not always. The last time I made that ride to/from my gym was March 10. Six days later I was SIP, by local decree and I never bothered to check with that nursery. I asked my neighbor who's doing my grocery shopping to pick up tomato seedlings for me, and they had none at the store at that point (around beginning of April). They made a couple Home Depot runs and bought me a couple of Ace 4" pots, then one day I saw eight 4" pots on my porch... 2 Celebrity, 2 more Ace, 1 Early Girl, 2 Big Beef, 1 Cherry. So, I have 10 tomato plants in the ground now where I usually grow kabochas, and some kabocha volunteers there. It's gonna be a crazy year. 2020 is shaping up to be the weirdest year in memory, sort of like 1964, i.e. just after JFK was shot dead. But this is weirder. Throw in a big earthquake and it'll be hard to top.
 
Interesting, thanks for the Info @BUTCH1. Dairy farmers are also dumping milk in huge quantities because of huge demand declines.
I exclusively buy nonfat dry milk powder and in recent years buy it online, usually from Walmart. The price for 20 quart package (4lb) has hovered around $15. I figure that might come down with the excess liquid milk, but haven't checked. Edit: Just checked and it's unavailable in that largest size, 4lb bags.

I figure pork has to be going up. I buy 8 pounds at a time at Costco, pork sirloin roasts, in a 4-pack of 2lb roasts. I love those because they are (were!) cheap and very lean. Just yesterday I made DIY sausage with a 2lb roast. I figure the price of pork at Costco is gonna shoot up some, probably beef to. I'm not going to Costco for a while though, I'm dedicated to flattening the curve.
 
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It's going to be interesting and something to keep an eye on. Personally, I don't think the impact will be severe for us retail consumer. I've noticed the grocery stores are pretty much back to normal as far as meat with the fridges full to the brim with chicken, beef, and pork. As long as people don't suddenly rush out and start hoarding meat, I think we'll be fine. I didn't read the ad but maybe his goal is to cause panic and hoarding of meat.

I'm not worried. I have hundreds of pounds of beef, chicken, and pork stored in my freezers. Most of the time, I buy primal cuts and cut my own. There are so many online suppliers now I can use them if need be. Plus, there's supposed to be over 2 billion pounds of meat in cold storage. I doubt much meat is being exported these days so if our domestic supply runs low, they can always release some more meat from storage.
I'd be doing some of the same if I had more freezer space. Mine is just in the bottom section of my Amana refrigerator, which is now pretty full (it always is!). If I bought full on dedicated freezer, it would have a lot of meat in it for sure. But we're in earthquake country. Hasn't happened yet that I lose freezer contents but it's very in the realm of possibility so if I go the freezer route I think I'll get a back up generator, a ~$1200 expense last I checked. Even so, that generator is definitely something I'm considering getting. Just my refrigerator's contents are enough to make me want it. I'd hate to lose that. Also, of course, life would be easier for me in the aftermath of an earthquake (assuming my house is standing) with that generator. Even wildfires here (Bay Area) have the potential to axe my power, although not so much my neighborhood, but I don't feel secure from that.
 
the cool thing about livestock is that, it's alive, you *don't* have to kill it, you can just let it stick around.

next month we're gonna have suuuuuper big chickens at the store.
Big chickens! I was waiting for UPS to deliver my new laptop from Costco the other day, sitting on my porch and spotted a couple of full grown black chickens walking down my street... Berkeley, CA. They were just pecking around the sidewalk perimeter at seeds, grubs, whatever. I figure they escaped from someone's yard.
 
How is everyone dealing with the crisis of the shortage of tissues? With all the at-home fapping during this quarantine it's essential that we ramp up production immediately!
 
@BUTCH1, one strange thing I've noticed is price increase and lack of availability of cheap cuts like shoulder clods and eye of the round. Do you know why that is? Shoulder clods used to be super cheap. Like low ~$2 /lb. Now it's almost mid $3 if you can find it. Who's buying all the shoulder clods?
 
@BUTCH1, one strange thing I've noticed is price increase and lack of availability of cheap cuts like shoulder clods and eye of the round. Do you know why that is? Shoulder clods used to be super cheap. Like low ~$2 /lb. Now it's almost mid $3 if you can find it. Who's buying all the shoulder clods?
We just got in 40cs and had trouble getting those, we use them for grinds and now that IBP tube ground beef cannot be had everyone's snapping up the clods.
 
We just got in 40cs and had trouble getting those, we use them for grinds and now that IBP tube ground beef cannot be had everyone's snapping up the clods.
I'm wondering why brisket is not suffering the same shortage as clods. People can also easily grind up brisket to make ground beef.
 
I'd be doing some of the same if I had more freezer space. Mine is just in the bottom section of my Amana refrigerator, which is now pretty full (it always is!). If I bought full on dedicated freezer, it would have a lot of meat in it for sure. But we're in earthquake country. Hasn't happened yet that I lose freezer contents but it's very in the realm of possibility so if I go the freezer route I think I'll get a back up generator, a ~$1200 expense last I checked. Even so, that generator is definitely something I'm considering getting. Just my refrigerator's contents are enough to make me want it. I'd hate to lose that. Also, of course, life would be easier for me in the aftermath of an earthquake (assuming my house is standing) with that generator. Even wildfires here (Bay Area) have the potential to axe my power, although not so much my neighborhood, but I don't feel secure from that.

I haven't updated it in awhile, but I have a freezer-storage thread here:


My current approach is to meal-prep (cook) one meal or snack a day. Target is around 20 minutes of active time, so not a monster time commitment or anything, plus I just plan out what to make every day on a weekly basis. Typical batch results is 6 servings. This works out to around 180 servings a month, all for a little bit of prep time every day. Then I've got heat & eat meals & snacks ready to go for breakfast, lunch, dinner, and in-betweeners without having to do a huge amount of cooking or planning...just pull stuff out of the freezer!

I've been fortunate in my life to not have to experienced hunger, but the last month has definitely given me some food-insecurity anxiety as grocery store supplies have run low, which is one of the reasons I sprung for an electric wheat grinder...I can make bread, rolls, cookies, cakes, desserts, etc. using wheat kernels, which last 30 years when properly stored. I'm not super interested in being a prepper, because if the whole world goes to pot, you're going to have bigger issues than just food, but with nearly 8 billion people needing to go to work & feed their families, I think the game is more about the ability to get through these lean periods of time securely rather than the universe falling apart & society collapsing. So I don't see an "end of the world" scenario as happening, but I do things things will probably get scarce at different points in the future, and I definitely want to make sure I'm prepared to take care of myself & my family through those times, so +1 for a deep freezer!

They don't all have to be huge, either. My friend has a tiny apartment and she has one of those small chest freezers, which she uses as an additional countertop. You can fit a ton of homemade or store-bought slim TV dinner trays in it vertically for quick & easy meals!
 
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https://www.cnbc.com/2020/04/28/trump-says-will-sign-order-on-virus-related-liability-problems.html

Trump plans to sign an order to keep the meatpacking plants open. Maybe this is what Tyson wanted with their ad placement.
That act allows processors to operate without fear from worker lawsuits, the question then becomes can anyone legally force workers into unsafe working conditions and threaten termination if non compliant?. From the article enhanced testing and protective gear will be provided, an IBP, (now Tyson) employee had complained they were given rags as protective gear and told to keep working.
 
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