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(Bloomberg) – First, only one refrigerator was closing. But now there are at least seven major meat processors in the United States whose operations have been halted in a matter of weeks. And all those voices that once assured Americans that supplies were guaranteed now sound like a chorus of concern over the lack of products.
There was an avalanche of news in just over 24 hours. Tyson Foods closed two of its main pork slaughterhouses. The number of cases continues to rise, including in Canada, where industry associations say that some of what is generally exported to the United States will likely remain in the country. And the president of JBS, the world’s largest meat producer, warned of deficits.
The United States government also released monthly figures on frozen food stocks, which stand out in the context of the cuts. A particular piece of information can convince even the most skeptical.
Combined supplies of pork, beef, and poultry in refrigerator refrigerators equal approximately two weeks of total meat production in the United States. Since most refrigerator outages are expected to last approximately 14 days for safety reasons, this increases the potential for deficits.
With the recent Tyson closings, approximately 18% of pig slaughtering capacity is totally disabled, and there are also slowdowns in pork, beef and poultry units across the country.
“When a facility is closed, protein availability for consumers across the country decreases,” said Steve Stouffer, head of Tyson Fresh Meats. “Consumers will see an impact on the supermarket as production decreases. It also means losing a vital market for ranchers. “
Tyson said Wednesday that it would close pig slaughterhouses in Iowa and Indiana. The outbreaks also led to the closure of JBS units in Minnesota and Colorado, and of Smithfield Foods in South Dakota. A Tyson slaughterhouse in Columbus Junction, Iowa, resumed operations after a previous shutdown, as well as a national meat-packing unit. in the state.
“There may be a supply problem in the future depending on the size and number of plants closing simultaneously,” Gilberto Tomazoni, president of JBS, said at a webinar organized by XP Investimentos. Although it is difficult to predict the consequences at this time, the continuation of the strikes could reduce the meat supply, he said.
“The virus will not disappear tomorrow,” he said.
Stops in slaughter units have a ripple effect on meat supply chains and rare fluctuations in prices: finished goods skyrocket while ranchers receive far less for animals.
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Almost half of Canada’s beef processing capacity was discontinued after the closure of a Cargill plant this week in Alberta. A JBS slaughterhouse in the province also cut production. Many ranchers in the region have no one to sell their livestock to. Canada exports around 50% of its beef.
“The solution, of course, is to make sure the refrigerators can get back to work as quickly as possible,” Marie-France MacKinnon, a spokeswoman for the Canadian Meat Council, said in an email.
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