Will there be Food shortages in 2021 and 2022? Over the last few months, food shortages have been popping up due to challenges with shipping in the United States. According to many business writers, the high demand and low supply have affected all levers of the global economy.
According to the US department of agriculture, there will be food shortages in 2021, which should continue into 2022. If you’ve been out shopping for your favorite food, you may have noted the problem (especially for meat and dairy products).
Based on the USDA outlook, the food prices are expected to rise between 2.2-9.6%. More than 50 million people in the US have experienced food shortages from 35 million the previous year.
Food Prices in the First Half of 2021
Chicken, beef, and pork were reduced in the stores by a significant margin. Notable spikes were seen in the prices of eggs and meat.
Major Chains like Buffalo Wild Wings, Wing Stop, and KFC are having trouble attracting customers. Others are facing difficulties keeping up with the workers. That being said, a revamped chicken sandwich is selling twice the average price. And because of the tight chicken supply, companies find it tough to keep up with the demand.
Will there be Food shortages in 2021 and 2022
According to David Gibbs (Yum CEO), they removed the flavored chicken items from the menu because of the limited supply.
After the WHO organization discouraged traditional dining and suggested friendly dining options, the ketchup shortage started to show up. Suddenly, the eateries stopped packing up side dishes, cold beverages, and entrees. The restaurants also followed the same direction.
The Washington Post has also reported that the shortage is way beyond chicken wings. McDonald’s also reported a decrease in fried chicken. Following the outbreak of the pandemic, over 160 meat processing plants were forced to close down.
Food security analysts also told the insider that the demand for meat products is way below the supply. The pork companies were also struggling to lower the production rate.
Coffee and cheese are facing delays
Dozens of containers are stuck at the port after months of shipping delays. And one-third of the US imports are still waiting for clearance at the dock. This backlog has led to an unexpected food shortage.
Some companies are also seeing a shortage of food on the shelves. According to Costco, chains are experiencing a shortage in food supplies like olive oil, seafood, and cheese. It’s no wonder General Mills has also raised the food prices due to shortage.
Another industry that has been hit hard is Coffee. In March 2021, Bloomberg reported an increase in coffee prices.
According to CNBC, pool owners have expressed concerns about chlorine shortage. A manufacturer in Louisiana has also stated that the price of chlorine doubled in the last few months.
Shortage in Corn products
In April 2021, many companies reported an increase in the demand for food products. As the supply concern looms, Argentina and Brazil have expressed concerns about the shortage of corn. On average, the price of corn has gone as high as 57% (doubled in the past year). And this cost is passed down to the consumer.
In June 2021, the price of beef is set to increase by 4.5% – this would drive the cost to $4.5 per pound. Despite the bottlenecks, the economy is expected to stabilize sometime in early May or June 2022.
The shortage is likely to persist in the short run.
Taco Bell is one of the latest companies to announce that it can no longer meet customer demand for food products. In an advisory notice, the food chain highlighted struggles with things like delivery and ingredient delays. And consumers are still expressing concerns about the continued struggle with grocery items.
But the supply chain issues are the ones to blame for the situation. For instance, the cost of freight and labor continues to be a challenge. According to the US labor report, the price of boneless thigh meat and fresh jumbo wings has reached a record high.
As the season strengthens, the demand for products and raw materials is slowly stabilizing. But again, manufacturers are understaffed following the economic recovery.
The federal government has also expressed concerns about the material shortage and the long-term impact on the price hike. But here is what’s hard to understand – for how long will this affect the economy?
While emerging technologies promise to confront the crisis, food security remains a challenge in the US.
Read more – How to Start Living a Plant-Based Lifestyle