Food-security remains a significant problem during coronavirus lockdowns. The next big issue unfolding is the shuttering of the nation’s food plants could drive food inflation sky high.

On Wednesday, Tyson Fresh Meats, the beef and pork subsidiary of Tyson Foods, released a statement that said its plant in Waterloo, Iowa, will suspend operations until further notice.

The company said the Waterloo location is its largest pork plant, has been running at reduced output “due to worker absenteeism.”

Tyson is planning to test all 2,800 workers for COVID-19 at the facility later this week.

“Protecting our team members is our top priority and the reason we’ve implemented numerous safety measures during this challenging and unprecedented time,” said Steve Stouffer, group president of Tyson Fresh Meats.

“Despite our continued efforts to keep our people safe while fulfilling our critical role of feeding American families, the combination of worker absenteeism, COVID-19 cases and community concerns has resulted in our decision to stop production.”

Stouffer warned that the closure of the pork plant could ripple through the production chain and cause significant disruptions to the “nation’s pork supply:”

“The closure has significant ramifications beyond our company, since the plant is part of a larger supply chain that includes hundreds of independent farmers, truckers, distributors and customers, including grocers,” Stouffer said. “It means the loss of a vital market outlet for farmers and further contributes to the disruption of the nation’s pork supply.”

The company said workers would be “compensated while the plant is closed.” There was no firm timeline on when the plant would reopen. However, there were several factors, including the “outcome of team member testing for COVID-19.”

We noted over the weekend that meat prices across the country are surging as food processing plants are closing because of the virus.

The latest plant closure was China-owned Smithfield Food’s factory in Sioux Falls, South Dakota, the largest pork processing plant in the US, due to a coronavirus outbreak, could leave Americans without pork products.

Also, health officials in Illinois closed Hormel’s Rochelle Foods plant last Friday, a move that could trigger a shortage of Spam products.

And it appears food inflation could be imminent as coronavirus is leading to the shutdown of food manufacturing plants across the country.



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