A bottleneck in the U.S. meat and livestock supply chain is impacting meat supplies at the grocery store. CoBank Lead Animal Protein Economist Will Sawyer says there is recovery ahead, but it’s not a vertical line. “It’s a v shape. As a result, the U.S. consumer is going to have to deal with the fact that there might be 30 to 40 percent less meat available. That might show up in one grocery store more than another,” says Sawyer. “Nevertheless, that will drive higher prices. We also can’t forget that many producers and consumers are feeling an economic pinch right now. Higher meat prices will stress the overall pocketbook.” Sawyer says President Trump’s executive order is a step in the right direction for the supply chain, among other things. “Meat processors are experiencing higher cutout prices. That’s driving a lot of incentive for them to reinvest into higher wages, more OSHA and CDC guidelines for the coronavirus,” says Sawyer. “All the things that have happened in the last six weeks will help bring these plants back online sooner and up to capacity. I hope we continue to improve as we work through May and into June.”
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