Food processing outlook clouded by uncertainty

Apr 28, 2020

The agri-food supply chain is very resilient, but not immune to economic cycles that shift food demand and introduce higher costs. The COVID-19 pandemic will bring a severe recession, and introduce permanent transformations in the supply chain and significant variability in profitability trends of food processors.

Food manufacturing was thriving prior to COVID-19

Patterns in food manufacturing sales leading up to the current recession show a healthy food processing sector as year-over-year (YoY) growth in monthly manufacturing sales was mostly positive (Figure 1). Aggregating data at that level can however hide some important trends across different sectors. For example, sales for the bakery, meat or fruit and vegetable preserving sectors have been growing but at a slower pace in the last twelve months.

Click here to see more...

Video: What Does 20 MILLION Hogs a Year Look Like?

?? The Multi-Plant System Processing 20 Million Hogs Annually in the Midwest JBS USA operates multiple large-scale pork processing facilities across the Midwest, including major plants in Iowa, Minnesota, and Indiana. Combined, these facilities have the capacity to process approximately 20 million hogs annually.

Each plant operates high-speed automated slaughter systems capable of processing up to 20,000 head per day, followed by fabrication lines that break carcasses into primals, sub-primals, and case-ready retail products.

Hog procurement is coordinated through electronic marketing platforms that connect regional contract finishing operations and independent producers to plant demand schedules. This digital procurement system allows for steady supply flow and scheduling efficiency across multiple facilities.

Processing plants incorporate comprehensive food safety systems, including pathogen intervention technologies, rapid chilling processes, and integrated cold-chain management. USDA inspection is embedded throughout the harvest and fabrication stages to ensure regulatory compliance and product integrity. Finished pork products — from bulk primals to retail-ready packaged cuts — are distributed through coordinated logistics networks serving domestic and export markets.