How Protein Processors Can Stay Ahead

During these uncertain times, is there a way to anticipate where demand is heading so businesses in the protein processing industry can get have more time to prepare?

It’s Monday mid-morning at the Whole Foods Market in Glendale, CA, and all chicken– from breasts to wings to thighs– has already been snatched up. Almost overnight, most of America has shifted from eating out a couple times a week to entirely cooking at home.

Thanks to the pandemic limiting travel, restricting restaurant dining options to take-out, and forcing school closures, grocery demand is off the charts. However, this increased grocery demand is being offset by a steep decline in restaurant/food service demand.

Since grocers sell different meat products in different proportions than restaurants, the protein supply chain has found themselves needing to quickly pivot operations in order to meet the consumer where they are. For many protein processors, the effort to shift production from foodservice products to those favored by supermarket shoppers requires additional warehouse workers and shifts.

As protein processors weather the storm, it can be of some comfort to anticipate the strength of coming out the other side. Businesses will come out of this more agile, leaner, and more responsive to future supply chain disruptions.

During these uncertain times, is there a way to anticipate where demand is heading so businesses in the protein processing industry can get have more time to prepare?

According to industry experts, the longer social distancing goes on, the more consumers will get used to cooking at home and making do with tighter budgets. As this becomes the ‘new normal,’ the likelihood of things immediately returning to the way they were pre-pandemic decreases. The more probable scenario once social distancing ends is seeing a quick spike in dining out followed by the new normal of cooking at home more and eating out less.

As protein processors weather the storm, it can be of some comfort to anticipate the strength of coming out the other side. Businesses will come out of this more agile, leaner, and more responsive to future supply chain disruptions.