Foodservice & Restaurant Supply Chain Disruption: Conflict, COVID, Climate
February 21, 2023
Turkey meat in cold storage increased in December to 189.7 million pounds. While this was 24 million pounds above cold storage levels at the end of 2021, it was still 57 million pounds lower than the 5-year average.
February 9, 2023
Entering a fourth consecutive year of supply chain calamity, factors like costs and weather could continue to strain the margins of meat producers, as shifting demand dynamics among the different meats creates further uncertainty.
February 2, 2023
So far in 2023, fertilizer supplies appear to be improving and prices are mixed but mostly lower compared with a year earlier, but analysts warn prices likely will be volatile, a common theme across the agricultural and food industries.
January 18, 2023
Florida will produce fewer oranges this year than California for the first time since World War II.
January 14, 2023
Though some commodities have seen deflation, including chicken, others have remained volatile.
January 10, 2023
Vegetable oil led the decrease, with the FAO Vegetable Oil Price Index down 6.7% from November to reach its lowest level since February 2021. International quotations for palm, soy, rapeseed and sunflower seed oils all declined in December, driven by subdued global import demand and prospects of seasonally rising soy oil production in South America.
January 3, 2023
War, dry weather, demand, inflation – the new year promises to be another volatile one.
December 28, 2022
Freight volumes for sea, air and trucks are expected to decline in 2023, and rates for all three “are on track to drop from their pandemic high points".
December 16, 2022
Wheat and rice production is unlikely to replenish depleted inventories, at least in the first half of 2023, while crops producing edible oils are suffering from adverse weather in Latin America and Southeast Asia.
December 15, 2022
After frost cut short the 2022 crop, Chilean citrus production and exports should bounce back in a big way in 2023, a new USDA report predicts.
December 13, 2022
The price of vegetables from producers shot up 38% on a monthly basis in November — and jumped over 80% compared to November 2021 — according to the U.S. Bureau of Labor Statistics latest Producer Price Index.
December 9, 2022
Cotton prices, which surged through 2021 and reached an 11-year high in May of this year, have been on a steady decline and are now 47% below that peak. A worsening consumption outlook has pulled prices back down.
The most recent U.S. Agriculture Department numbers show a drop of 56% in Florida orange production compared with last season.
December 1, 2022
Logistics leaders should take it slow as the industry recalibrates.
November 18, 2022
When faced with low water levels, grain and soybean shippers are presented with several options. Two of those options include storing their soybeans or grain for longer than they normally would or trucking a portion of them to local livestock markets.
November 15, 2022
Growers aren’t counting on any quick fixes. “It’s going to be a rough go for the next couple years.”
November 10, 2022
Overall, Florida’s November tomato crop will be smaller than normal because of the hurricane, but the state will remain a significant supplier through December.
November 1, 2022
Only 28% of the U.S. winter wheat crop is in good or excellent condition, one of the worst starts for the crop in years.
October 31, 2022
Chicago wheat futures on Monday jumped more than 5% and corn rose over 2% from the fears over supplies. "We have to see how the situation unfolds.”
October 25, 2022
Preliminary losses for Hurricane Ian were around $1.56 billion and include $676 million for citrus and up to $231 million in other fruit and vegetable losses.
October 18, 2022
The Alaska Board of Fisheries and North Pacific Fishery Management Council announced last week that the population of snow crab in the Bering Sea fell below the regulatory threshold to open up the fishery.
October 14, 2022
“America is going to shut down if we shut down”.
October 13, 2022
Florida’s orange output will drop substantially compared with last season, according to USDA.
Global aluminum prices soared after news the Biden administration is considering an effective ban on Russian imports of the metal.
October 7, 2022
Destruction from Hurricane Ian threatens to raise citrus prices and worsen what was already expected to be a dismal harvest.
September 28, 2022
Despite concerns of drought, futures have shed 25% since late last month bringing prices closer to their typical levels.
September 26, 2022
Poultry supply is likely to see “substantial” deflation beginning in Q1 2023, while beef prices are expected to increase another 15% and remain high until 2025 according to a recent report.
September 22, 2022
Lower milk production on U.S. dairy farms and labor shortages for processing plants have weighed on butter output for months, leaving the amount of butter in U.S. cold storage facilities at the end of July the lowest since 2017
September 20, 2022
“The current market expectation is that global grain and oilseeds markets need two consecutive normal crop years to stabilize global supplies.”
September 19, 2022
The region produces an abundance of cotton and cottonseed, accounting for 66% of the state’s total yield. It’s more than a third of the nation’s total crop. It’s 4% globally.
September 12, 2022
California typically produces about one-fifth of U.S. rice, most of it medium-grain Japonica varieties “This is a year that is just a disaster”.
September 8, 2022
India exports rice to more than 150 countries, and any reduction in its shipments would increase upward pressure on food prices, which are already rising because of drought, heat-waves and Russia's invasion of Ukraine. Read more here.
September 7, 2022
Rising prices are catching up with the roughly $43 billion U.S. pork industry. Consumer demand for pork is weakening, while costs are rising.
The country is projecting its second-largest wheat harvest ever that could bring a windfall to farmers and help calm global markets. But much of the country’s storage capacity is already full, ports are operating at capacity and exporters face trouble finding capacity in a bulk shipping sector that has been knocked sideways over the past year.
August 26, 2022
U.S. food and beverage companies are racing to keep operations running during a nationwide shortage of carbon dioxide. “Supply is in a very fragile state”.
Rising costs for grains are boosting prices for food and fuel. Food prices rose 11% in July versus last year, according to the Bureau of Labor Statistics last CPI report.
August 16, 2022
Southwestern cotton growers are abandoning millions of parched acres that they planted in spring, prompting forecasts for the weakest U.S. harvest in more than a decade and sending prices sharply higher.
HPAI, demand from the foodservice sector, poor weather, logistics and labor issues all contributed to the record price runup.
August 15, 2022
Salsa, Ketchup and Sauces could be getting a supply jolt.
July saw the biggest inflationary gap between grocery stores and restaurants since the 1970s.
August 8, 2022
War, climate change, and a nightmare supply chain is driving avocado prices to new heights. U.S. restaurants are likely to be impacted first, followed by grocery stores.
August 3, 2022
Farmers in southern Spain fear extreme drought and consecutive heatwaves this year could cut olive oil output in the world's largest producer by nearly a third in the 2022/23 season.
August 1, 2022
U.S. consumers spent $2.4 billion on breaded chicken sandwiches in the June quarter, up 3% from the previous three months. Despite boneless, skinless breast-meat prices nearly tripling since the start of 2021, demand from restaurants has stayed hot in recent months.
July 28, 2022
As soaring food prices continue to wreak havoc globally, there is some reprieve in cooking oil, coffee and avocado
July 26, 2022
In its first forecast for 2023, USDA sees inflation retracting to a 2.5%-3.5% range. The 20-year historical average for consumer food prices is a 2.4% rise.
July 21, 2022
US supply chains are graded an F+ as disruption is the new normal and the ability to optimize a perfect supply chain no longer exists.
July 20, 2022
Truckers opposed to new California ‘gig economy’ law have effectively halted import and export operations at the West Coast’s third-busiest container port.
July 19, 2022
Fueled by a strong economic recovery from the COVID-19 pandemic, U.S. consumers are spending record sums on food eaten away from home.
July 15, 2022
Legislation has been introduced that would remove food safety oversight functions from the Food and Drug Administration (FDA).
July 11, 2022
Some companies are renegotiating agreements to take advantage of lower rates.
July 8, 2022
Supply constraints have pushed up prices of the fruit considerably.
June 28, 2022
The world has perhaps never seen this level of simultaneous agricultural disruption, meaning it may take years to return to global food security. “Where we are today it's two to three years before you get out of the current environment".
In the U.S. prices increased 7.4% at restaurants and other food venues outside the home, also marking a more-than-four-decade increase.
June 21, 2022
A slowdown in consumer spending caused by inflation and a potential recession will have a massive impact on freight demand and prolong an inventory drawdown. For supply chains, the consumer pullback couldn’t come at a worse time.
June 20, 2022
Diners may be trading dine-in restaurants for less expensive dining like fast food and fast-casual and there is a "pent-up demand for services like dining out."
June 12, 2002
Some of the nation’s biggest food suppliers and restaurants said they would continue to raise prices as they face starkly higher costs.
June 2, 2022
For 11 weeks restaurant traffic has declined. Still, restaurants are managing to hold on.
May 31, 2022
Supply-chain issues persist as the volume of containers is more than ports, rails and warehouses can quickly handle.
May 27, 2022
From substitutions to diversifying suppliers, companies have to stay flexible as war, weather and other disruptions pressure ingredient supplies and prices.
May 18, 2022
In April, average wholesale food prices in the PPI jumped 18% from a year earlier. It was the largest 12-month increase in nearly five decades. Eggs surged 220%, butter jumped 51%, fats and oils were up 41%, and flour 40%. The outlook for higher food prices reflects a broader trend for the U.S. economy.
May 17, 2022
Portions at U.S. restaurants are indeed getting smaller.
May 11, 2022
Wholesale food costs were 17% higher in March than the same time last year. "Inflation is just ridiculous now."
May 10, 2022
Cotton prices have soared to their highest levels since May 2011 as concerns grow over a possible export ban by top exporter India and a severe drought hitting U.S. yields. Prices are not expected to come back down for some time.
May 9, 2022
For the first time ever, farmers the world over — all at the same time — are testing the limits of how little chemical fertilizer they can apply without devastating their yields come harvest time. Early predictions are bleak.
May 6, 2022
The economic fallout of the war in Ukraine is evident in all business sectors, and the foodservice sector, both domestically and globally, has not been spared.
May 3, 2022
In light of the Russia-Ukraine war, new report provides the 12-month inflation outlook in North America for packaging materials, including plastic, paper, glass, and aluminum.
April 28, 2022
Ukraine war, drought in South America, and biofuel demand pressure supplies. If corn and soybeans notch new highs, they will be the latest raw materials to do so in the broadest and sharpest commodities rally of the modern trading era. Vegetable oils, oats, and wheat already reached records in 2022.
April 25, 2022
Indonesia — the largest producer of the edible oils commodity in the world — announced plans for an export ban of palm oil starting April 28. This comes as the broader edible oil market has been hit by a series of inflationary events, including poor weather and labor shortages in key crop-growing countries, rising global demand and the war in Ukraine.
April 18, 2022
“If the war ended today, we would have food inflation widely for three years.”
April 12, 2022
What this means for dining out as COVID cases increase more than 50% in 10 days.
April 7, 2022
“The world is realizing it’s not easy to take a major commodity like sunflower oil and switch to an alternative.
April 5, 2022
Raising prices can only go so far, so some eateries are using menu engineering to draw customers’ attention to items with better profit margins or less dramatic price hikes.
April 2, 2022
A rapidly escalating bird-flu outbreak in the U.S. is contributing to a surge in egg prices and threatens to raise prices on other poultry products in the coming months.
April 1, 2022
The culprit? Citrus greening and weather impact.
Increases in energy, transportation, labor costs, and the conflict between Russia and Ukraine will lead to continued price increases for food packaging over the next 12 months
March 30, 2022
The cutoff in commodities from Russia is changing the global map for sourcing raw materials.
March 29, 2022
Yet total restaurant visits in February were down 8% from a pre-pandemic level in February 2020.
March 23, 2022
After drought and heat reduced yields in the West by 9%, Maine growers are shipping millions of potatoes to Washington and Idaho
It all amounts to a double whammy for the global food supply.
March 16, 2022
“Even the most prepared businesses will be impacted by these new lockdowns in China, as flexibility within the supply chain is minimal.”
CP carries U.S. grain to Pacific Northwest export terminals, and moves potash fertilizer into the United States, which is critical ahead of spring planting season.
Prices for citrus fruits have increased 16.2% over the past year, due to cold weather and disease.