Document Type

Article

Publication Date

12-2021

Keywords

economies of size; food demand; local food systems; resilience

Abstract

Purpose

Some of the biggest economic disruptions from the COVID-19 pandemic were experienced in food supply chains, particularly in the protein sector. This article examines these protein-sector supply-chain shocks, exploring the nature and causes of the market disruptions during the pandemic, evaluating the effects of these shocks from an economic perspective, and discussing potential market and policy responses that could mitigate the adverse effects of similar events in the future.

Sources

A variety of sources contemporary to the pandemic were surveyed to document pandemic effects on meat and poultry supply chains. The implications of pandemic effects for supply chain participants were explored, drawing from sources in supply chain management, network reliability, and agricultural economics literature.

Synthesis

Pandemic-related disruptions to meat supply chains and the economic hardship associated with those disruptions have generated tremendous interest in improving supply chain robustness and resilience. Much of that interest focuses on encouraging local and regional processing operations, creating shorter supply chains. At the same time, commercial interests will most likely aggressively pursue further automation to mitigate the effects of labor supply disruption—their major problem during the pandemic.

Conclusions and Applications

Local and regional processing operations are receiving a significant infusion of pandemic relief funds. Consumers are currently keenly interested in local and regional food options. At the same time, commercial operations will likely become even more efficient due to postpandemic adjustments. Thus, local and regional operations may face an even more challenging competitive environment than before the pandemic.

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