Foodservice & Restaurant Supply Chain Disruption: Conflict, COVID, Climate

News

December 1, 2022

The Logistics and Supply Chain Slowdown Has Begun

Logistics leaders should take it slow as the industry recalibrates.

November 18, 2022

Export Grain Shippers Mull Options Amid Limited Barge, Rail Capacity

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

California Lettuce Virus Has National Impact

Growers aren’t counting on any quick fixes. “It’s going to be a rough go for the next couple years.”

November 10, 2022

Florida’s Tomato Crop Impacted By Hurricane

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

Winter Wheat Crop in Poor Shape Amid Drought

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

World Food Supplies at Risk as Russia Withdraws from Deal

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

Florida’s Ag losses Total Over $1B

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

Alaska Cancels Snow Crab Fishing Season

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

Mississippi River Water Levels Threaten Barge Traffic

“America is going to shut down if we shut down”. 

October 13, 2022

U.S. Citrus Estimates Drop After Florida Hurricane

Florida’s orange output will drop substantially compared with last season, according to USDA.

Ban on Russian Aluminum Under Review

Global aluminum prices soared after news the Biden administration is considering an effective ban on Russian imports of the metal.

October 7, 2022

Florida’s Orange Crop May Be Significantly Damaged

Destruction from Hurricane Ian threatens to raise citrus prices and worsen what was already expected to be a dismal harvest.

September 28, 2022

Cotton Prices Drop Back to Earth

Despite concerns of drought, futures have shed 25% since late last month bringing prices closer to their typical levels.

September 26, 2022

Beef Prices Could Rise 15% in 2023, Poultry Costs to Fall

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

The Trouble With Butter

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

Food Supply Stays Tight With Poor U.S. Harvest

“The current market expectation is that global grain and oilseeds markets need two consecutive normal crop years to stabilize global supplies.”

September 19, 2022

Texas Drought Cost Cotton Industry $2B in Losses

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

CA Drought Leaves Rice Farmers Dry

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 Imposes Duty on Rice Exports

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

Inflation Bites the Meat Business

Rising prices are catching up with the roughly $43 billion U.S. pork industry. Consumer demand for pork is weakening, while costs are rising.

Australia’s Bumper Wheat Crop Faces Constraints

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

C02 Shortage Sends Food and Drink Makers Scrambling

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”.

Grain Forecast Courses Through Supply Chains

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

Drought Devastates U.S. Cotton Harvest

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.

Egg Prices Surge Due to Disease, Demand and Drought

HPAI, demand from the foodservice sector, poor weather, logistics and labor issues all contributed to the record price runup.

August 15, 2022

California Tomatoes Face a 1,200 Year Drought

Salsa, Ketchup and Sauces could be getting a supply jolt.

Restaurant Prices are a Bargain as Grocery Prices Soar

July saw the biggest inflationary gap between grocery stores and restaurants since the 1970s.

August 8, 2022

The Great Avocado Shortage

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

Spanish Olive Oil Output Could Plunge by a Third

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

Chicken Sandwiches Remain the Star of Inflation-Era Menu

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

Some Food Costs Ease But Prices Remain High

As soaring food prices continue to wreak havoc globally, there is some reprieve in cooking oil, coffee and avocado

July 26, 2022

Could Food prices Ease in 2023?

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

Stakeholders Wishing for a Return That Won’t Happen

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

Blockaded Port of Oakland Braces for More Protests

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

Foodservice Spending is Setting Records, USDA Reports

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

New Single Food Safety Agency Proposed

Legislation has been introduced that would remove food safety oversight functions from the Food and Drug Administration (FDA).

July 11, 2022

Freight Rates and Shipping Demand Starting to Fall

Some companies are renegotiating agreements to take advantage of lower rates.

July 8, 2022

Avocado Shortfall Follows Meager Mexico Harvest

Supply constraints have pushed up prices of the fruit considerably.

June 28, 2022

Years of High Food Prices Ahead

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".

War and Weather Endanger Global Food Supplies

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

Potential Recession and the Supply Chain Bullwhip are Colliding

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

Consumers are Still Dining Out Despite Inflation

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

Food Prices to Keep going Up as Costs Surge

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

Restaurant Sales are Up, Traffic Counts are Down

For 11 weeks restaurant traffic has declined. Still, restaurants are managing to hold on.

May 31, 2022

More Capacity But Containers Still stuck in Port

Supply-chain issues persist as the volume of containers is more than ports, rails and warehouses can quickly handle.

May 27, 2022

A New Normal for Edible oil Procurement

From substitutions to diversifying suppliers, companies have to stay flexible as war, weather and other disruptions pressure ingredient supplies and prices.

May 18, 2022

Pent-Up Inflation Will Drive Food Costs Even Higher

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

Fewer Nuggets, Smaller Salads: Shrinkflation Hits U.S. Restaurants

Portions at U.S. restaurants are indeed getting smaller.

May 11, 2022

Restaurants That Survived the Pandemic Are Now Threatened by Inflation

Wholesale food costs were 17% higher in March than the same time last year. "Inflation is just ridiculous now."

May 10, 2022

Cotton Prices Hit 11-Year High

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

Historic Fertilizer Crunch Threatens Food Security

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

Geopolitical Risks On The Menu

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

How Will Inflation Affect Packaging Material Costs?

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

Corn and Soybeans Near-Record Prices, Push Food Costs Higher

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

Top Palm Oil Producer to Ban Some Exports

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

War to Have Lasting Impact on Food Inflation

“If the war ended today, we would have food inflation widely for three years.”

April  12, 2022

Mask Mandate is Back in Philadelphia

What this means for dining out as COVID cases increase more than 50% in 10 days.

April 7, 2022

The Global Scramble for Cooking Oil

“The world is realizing it’s not easy to take a major commodity like sunflower oil and switch to an alternative.

April 5, 2022

Restaurants are Getting Creative to Counter Soaring Food Costs

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

Egg Prices Jump as Bird Flu Hits Poultry Flocks

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

U.S Citrus Supplies are the Lowest in 50 Years

The culprit? Citrus greening and weather impact.

Packaging Material Prices Continue to Rise

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

Demand for Canadian Crops is Surging

The cutoff in commodities from Russia is changing the global map for sourcing raw materials.

March 29, 2022

US Restaurant Traffic Increases After January Decline

Yet total restaurant visits in February were down 8% from a pre-pandemic level in February 2020.

March 23, 2022

Idaho Needs Potatoes, So Maine is Chipping In

After drought and heat reduced yields in the West by 9%, Maine growers are shipping millions of potatoes to Washington and Idaho

Fertilizer Shortage Imperil's World Food Supply

It all amounts to a double whammy for the global food supply.

March 16, 2022

China's Lockdowns Set to Further Disrupt Global Supply Chain

“Even the most prepared businesses will be impacted by these new lockdowns in China, as flexibility within the supply chain is minimal.”

US Shippers Brace for CP Rail Strike, Latest Supply Chain Disruption

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.

Citrus Prices Spike on Weather and Disease Woes

Prices for citrus fruits have increased 16.2% over the past year, due to cold weather and disease.

Author: Supply Chain Scene