Food supply chain shifting focus from supplying restaurants to households
A dropping demand in food supply from restaurants and an increased demand in food needs for households has resulted in dumped milk and eggs, and bulk products stored in freezers.
“Pre COVID-19, 50% of our food was consumed outside the home. Now, 100% of our food is consumed inside the home,” state Department of Agriculture Secretary Russell Redding said Wednesday.
That change has resulted in a seismic shift in the way food suppliers operate, with roughly half the food in the food supply chain typically packaged in bulk for restaurants. Now, households are increasing their demand for products, but have no interest in buying 20 pounds of bacon. Food that was packaged in bulk is being broken down and relabeled whenever possible. But that cannot always be done because of FDA labeling and food safety requirements. Sometimes, it is cost prohibitive to suppliers to repackage and relabel products, Redding said.
“I think every one of the companies will tell you they’re struggling to reach that household demand at the same time as they’re seeing their food service demand drying up,” he said.
The poultry industry was hit the hardest, he said. One of the biggest challenges was in milk and eggs, some of which could not be repackaged and relabeled within the shelf life. However, that waste is decreasing, he said.
“This day compared to the last couple and particularly last week, we’re not dumping as much milk as we were. We’re not having to toss as many eggs as we were,” he said. “It’s still happening, but not on a large scale.”
Many bulk meat products have been frozen. He said there is cold storage space available, but it is difficult to find. Canned products often cannot be repackaged for household sizes because of food safety requirements. He said officials are looking for creative ways to use those bulk products, such as providing the food to mass feeding sites.
He lauded the support given to food banks, which are feeding high numbers of Pennsylvanians as unemployment reaches record numbers.
“When we talk about food and agriculture, Pennsylvania will not accept hunger as our next pandemic,” he said.
Pennsylvania has not experienced the same level of problems as other states have experienced with food supply, he said. However, some food processing plants and other companies within the food supply chain in Pennsylvania were closed for two weeks for cleaning to prevent widespread transmission, and some have struggled to maintain adequate staffing, impacting other areas of the supply chain in turn.
“We have processors in Pennsylvania that rely on a predictable supply of animals and poultry, and when plants shut down – for some as long as two weeks – those animals, you can’t furlough them,” he said.
He said the animals still require food and adequate housing, and some have been moved to new homes temporarily to ensure they are given proper care.
Most suppliers are reopening now, and the Department of Agriculture has issued guidance according to CDC guidelines, he said. The Department of Agriculture announced earlier this month there is no evidence that the coronavirus can be transmitted through food or packaging.
“The food supply is safe, reliable and resilient,” he said. “If there’s a silver lining in this, it’s that people are seeing the value of food and who is feeding them.”