Ways Ranchers can Overcome the Challenges Faced During COVID-19

IN MARCH, THE COVID-19 PANDEMIC affected industries, businesses, and millions of people across the U.S. As fear and panic-shopping set in among consumers with the unknown uncertainty of the duration of the virus and social distancing and stay-at-home orders in place across multiples states, the food supply chain was beginning to shake with demand for food exceeding supply.

The demand for meat specifically was–and continues to be–at an all-time high, leaving the shelves faster than grocers can stock it. Mid-March alone reported a 76.9 percent increase in meat excluding deli meat, compared to the previous year. With restaurants and most of the tourism/hospitality industry closed, a shift in supplying food and meat from foodservice to food retail, has changed the way meatpacking facilities and processing plants handle their operations. This has put a strain on farmers and ranchers across the nation, many of them facing three top challenges.

Challenge 1: Consumer Demand Disrupting the Food Supply Chain

There are typically three main sale-channels where farmers and ranchers sell their food–resulting in our three types of farmers: those that sell to the restaurant/hospitality industry, those that sell to their local farmers markets, and those with existing retail partners and/or direct-to-consumer sales channels. With restaurant and business closures, school closures, and local farmers markets shutting down, these farmers who rely on these channels for their main business, have lost their revenue stream.

Challenge 2: Higher Consumer Meat Prices Versus Lower Cattle Prices