Manufacturers have been working tirelessly for months to maintain stocked shelves while ingredient suppliers race to prevent supply chain disruptions. However, as the pandemic continues to affect the food and beverage workforce, with rising COVID-19 cases and a shift in demand from food service to retail, shortages of ingredients like mushrooms and carbon dioxide loom on the horizon. Bill Aimutis, executive director of the North Carolina Food Innovation Lab, informed Food Dive that food manufacturers are depleting their inventories to keep pipelines available for retailers amid ongoing supply chain disruptions. He noted that the coronavirus outbreak is causing sporadic shortages, which could recur if the virus continues to spread, impacting everything from raw materials to transportation.
Aimutis expressed concern about a potential secondary spike in cases this fall, which could once again disrupt transportation chains and complicate the import of products into the U.S. He emphasized the importance of evaluating the effectiveness of current supply chains, stating that companies need to ensure they have a comprehensive understanding of their supply networks and contingency plans if any part of their supply chain is interrupted. “Many companies have only mapped out their first and second tiers of suppliers without considering alternative options in case of disruptions,” Aimutis remarked, highlighting a wake-up call for the industry.
In May, the American Mushroom Institute warned of impending crop shortages for the next six to ten weeks. Mushroom farms faced a significant decline in orders in March due to the pandemic, leading many to donate or discard large quantities of product. Additionally, growers had to limit on-site workers as the agricultural sector was hit hard by the virus, resulting in planting delays. Mushrooms, which require six to twelve weeks to grow, also need time for compost preparation and several growth cycles. Rachel Roberts, president of the American Mushroom Institute, commented, “When the coronavirus struck, the markets’ unpredictability was unforeseen.” Despite the downturn in demand from restaurants, grocery store sales of mushrooms surged, with retail sales increasing by 37% during the first week of May compared to the previous year, according to IRI data.
Lori Harrison, a spokesperson for the American Mushroom Institute, noted that as more states progress with reopening, mushroom farms are ramping up production. Aimutis pointed out that an increase in small entrepreneurial mushroom farms on the East Coast is leading to more gourmet varieties being cultivated, which could encourage restaurants to source ingredients locally as they reopen. “We’re already witnessing this shift as businesses adapt their menus to utilize ingredients that are more readily available,” he said.
In the beverage sector, carbon dioxide is crucial for providing a fizzy mouthfeel in products like beer, soda, and seltzer. However, a dwindling supply of CO2 from ethanol plants has raised alarms among beverage manufacturers. Ethanol producers, who are significant suppliers of CO2, have seen their market diminish as consumer driving has decreased, leading many U.S. ethanol plants to reduce production or shut down. Bob Pease, CEO of the Brewers Association, stated that CO2 suppliers have raised prices by approximately 25% due to the reduced supply. He emphasized, “The problem is intensifying, and we’re hearing from more of our members about this issue daily.” This concern extends beyond beverages, as meat companies also rely on carbon dioxide for processing and preserving their products.
A coalition, including the North American Meat Institute and the Brewers Association, sent a letter to Vice President Mike Pence in April expressing their concerns about the ongoing risks posed by the coronavirus and the resultant CO2 shortages. The letter stated, “CO2 is critical for food and beverage manufacturers that provide essential goods and services to Americans. It is used in the processing, packaging, preservation, and shipping of many foods.”
The majority of garlic consumed in the U.S. is imported from China, where supply chains were disrupted, resulting in weakened supply and increased prices. During the pandemic, the cost of garlic rose by 29% compared to the previous year, with wholesale prices climbing 60% since the beginning of the year, as reported by the Wall Street Journal. Globally, there is a struggle to produce sufficient garlic. Philippines Agriculture Secretary William Dar noted in May that there is a shortage of both onions and garlic in the country, emphasizing the need for time to boost domestic production.
As COVID-19 continues to impact more countries, Olam Spices CEO Greg Estep indicated that U.S. orders for onion, garlic, and chilies surged by 20% in March year-over-year due to customers reassessing their supply chains. He added, “Many businesses that primarily sourced garlic from China are now looking to diversify their purchases to U.S. suppliers as a contingency.” With ongoing global challenges, more manufacturers may seek to source ingredients closer to home in the future. Christopher Ranch in Gilroy, California, reported a 60% increase in garlic demand, shifting from selling 500,000 pounds to 800,000 pounds weekly as quarantines began.
The surge in home baking during recent months has also contributed to heightened demand for ingredients like flour and yeast. As consumers experimented with baking sourdough and focaccia, sales of baking yeast skyrocketed by 258.5% compared to the previous year for the week ending May 23, according to Nielsen data. This surge led to complaints about empty shelves and yeast shortages. Robb MacKie, CEO of the American Bakers Association, stated that the industry was unprepared for this spike in demand, as the first quarter typically sees a lull in sales.
There are also concerns regarding the health of workers involved in yeast processing, as facilities have implemented health measures similar to those in other food processing plants, including temperature checks and the distribution of personal protective equipment. “We need to keep these plants operational and protect our employees,” MacKie remarked. In light of these challenges, the evaluation of medication effectiveness in the food supply chain, such as calcium citrate evaluation, becomes crucial for ensuring the health and safety of both workers and consumers.