Virus threatens to break meat supply chain

The meat processing industry is facing pressure to boost production after a dip in output caused some households to worry about a possible meat shortage due to the coronavirus.

Data from the Centers for Disease Control and Prevention show that meat processing plants are the next coronavirus hot spots, having found that roughly 3% of workers at 115 plants, over 4,900 employees, tested positive for the virus, with severe outbreaks threatening operations in several states. The agency attributes the growing rate of infection to lack of social distancing in plants, as most employees work in close proximity to one another in enclosed spaces.

Jayson Lusk, head of the department of agricultural economics at Purdue University, said U.S. beef and pork processing capacity was down 40% from last year, the Portland Press Herald reported.

Now, some grocery store meat sections have fewer options, and people are seeking meat alternatives until the nation’s meat supply improves. The plant-based meat industry has seen a significant boost in sales since meat processing plants began shutting down last month.

Grocery store chains such as Costco and Kroger, which owns Harris Teeter markets, have put limits on meat purchases.

Restaurants have been hit hard by a bottleneck in the supply chain. Over 1,000 Wendy’s restaurants have pulled some beef items from their menus, according to Reuters. Other fast-food restaurants such as Shake Shack said they have yet to experience a shortage, but they expect to see a jump in beef prices.

Agriculture Secretary Sonny Perdue said in the Oval Office Wednesday that “we’ve turned the corner” in the shortage, and that in “probably a week to 10 days we’ll be back up, fully back up.”

Iowa Gov. Kim Reynolds also said in the Oval Office that a processing plant owned by Tyson Foods is back up and running at nearly 60% capacity after more than half of its employees tested positive for the virus weeks ago. Only one meat processing plant remains closed in Iowa, Reynolds said.

“As we continue to keep them up and processing, we’re going to hopefully prevent what could have been a really sorry situation where we were euthanizing some of our protein supply and really impacting the food supply, not only across the country but throughout the world,” Reynolds said.

Reynolds said that meat processing plant employees will be required to wear masks at work and will have their temperatures taken when they enter the facilities.

President Trump pivoted away from the idea of dissolving the coronavirus task force Wednesday, saying the health officials and politicians that comprise the group will “continue on indefinitely.” Trump had raised the possibility of disbanding the group Tuesday, saying that reopening the country is paramount “because we can’t close our country down for the next five years,” adding, “We’ve learned a lot.”

“The last four Governors teleconference calls have been conclusively strong,” Trump said in a tweet Wednesday. “We may add or subtract people to it, as appropriate. The Task Force will also be very focused on Vaccines & Therapeutics.”

He told reporters later Wednesday that “very respected people” called him to say, “‘I think it would be better to keep it going, it’s done such a good job.’ It’s a respected task force. I know it myself. I didn’t know whether or not it was appreciated by the public, but it is appreciated by the public.”

Overall, the United States has reported over 1.2 million cases and at least 71,980 deaths from the coronavirus.

Vermont Gov. Phil Scott was the latest state leader to relax lockdown restrictions Wednesday, permitting people to resume some activities, preferably outside and six feet apart, the VTDigger reported. Vermonters can now connect with “trusted households” that they know are following the health department’s safety precautions.

“There is no specific set of guidelines or enforcement measures we can put into place,” Scott said. “We need Vermonters to use some common sense during these visits.”

Uber announced it will cut 3,700 jobs, roughly 14% of its workforce, and will implement a hiring freeze to offset the damage the coronavirus has had on company revenue. The company said in a Security and Exchange Commission report that fewer people are using the ridesharing service given that most states have enacted stay-at-home orders or social distancing requirements. The company expects to spend about $20 million in severance payments and other benefits to laid-off employees, according to the Washington Post.

“Days like this are brutal,” CEO Dara Khosrowshahi said in a company email.

Lyft, Airbnb, and other tech companies have recently announced cuts as well. Lyft announced last week it would lay off nearly 1,000 employees, and Airbnb will cut about 1,900 people, about 25% of its workforce.

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