Jake Harper
There have been concerns about a chicken shortage in the US since 2021, with restaurants being forced to raise their prices. The shortage has been attributed to supply chain issues, the Omicron variant, and labor shortages. In 2022, the Omicron variant caused worker absences, disrupting the production process and supply chain. This, along with a shortage of supplies and labor necessary for production, has made it difficult to meet the demand for chicken tenders and other processed poultry products. In addition, bird flu has resulted in the culling of millions of chickens, which could lead to a further shortage of chicken meat and eggs. However, some argue that the short life cycle of broiler chickens makes it less likely that bird flu will significantly impact the supply of chicken meat.
| Characteristics | Values |
|---|---|
| Year | 2021, 2022, 2025 |
| Month | June, July |
| Country | USA, Australia |
| Cause | Supply chain issues, Omicron, Weather, Packaging, Feed material, Antibiotics, Bird flu |
| Impact | Increase in prices, Difficulty in finding chicken tenders, Cancelled special pricing, KFC cutting menu items |
| Resolution | Opt for less processed poultry products, Buy a whole chicken, Replace underperforming roosters |
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What You'll Learn
The Omicron variant and supply chain issues
The Omicron variant of the COVID-19 virus has exacerbated existing supply chain issues in the food industry. The fast-spreading nature of the variant has resulted in a surge of worker absences, causing labour shortages across farms, manufacturers, distributors, and retailers. This has disrupted operations and reduced productivity, leading to shortages of meat, eggs, and other food items in grocery stores across the United States.
The impact of Omicron on the food supply chain is significant, with many workers falling ill and entire production lines affected. This has resulted in a drop in productivity and output, contributing to shortages on supermarket shelves. The situation is further complicated by the Midwest being a major hub for packaged food companies, with the variant's spread in the region causing particular concern for the industry.
The labour shortage has been exacerbated by the fact that schools and daycare centres have been impacted by Omicron, forcing many Americans to stay home from work. This has resulted in a decrease in available workers, particularly in the food production and supply chain industries. Additionally, high fuel prices and severe weather conditions have further disrupted transportation and delivery services, causing backlogs and delays in getting food products to market.
Some companies are attempting to mitigate the impact of Omicron by increasing hiring efforts. However, the highly contagious nature of the variant has caused concerns among meat production companies, with signs of declining productivity and output. The combination of high demand, labour shortages, and transportation disruptions has resulted in empty shelves in supermarkets across the United States, with consumers facing difficulties in accessing meat, eggs, and other essential food items.
While it is challenging to predict the exact duration of these issues, experts believe that sporadic incidents of product shortages will continue until supply chains can adapt to the new challenges posed by the Omicron variant.
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Labour shortages and worker illness
The pandemic has also exacerbated pre-existing labour issues in the industry. COVID-19 outbreaks in meatpacking plants have resulted in workers having to quarantine or leaving the industry due to health concerns. Additionally, suppliers have faced challenges in hiring and retaining workers, as some have chosen to remain on unemployment benefits rather than return to work.
The labour shortages have been further compounded by other factors, such as shortages of packaging materials and transportation issues. These issues have contributed to slowdowns in the industry and impacted the supply of chicken to restaurants and retailers.
The chicken industry is also facing challenges beyond labour shortages and illness. For example, one major supplier experienced a significant setback when they introduced a new type of rooster that was supposed to improve meat quality but ended up producing fewer fertilized eggs. This resulted in a decrease in the chicken supply, which the supplier is now working to rectify.
While it is challenging to predict when the labour issues will be entirely resolved, some suppliers believe they have passed the most challenging period and anticipate improvements in the coming months.
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Packaging material shortages
The chicken supply chain is complex, and shortages can occur for a multitude of reasons. While there is no single cause, the COVID-19 pandemic has significantly impacted the industry, causing labour shortages, packaging material delays, and transportation issues.
Labour shortages have affected chicken production and processing. Sickness and quarantine requirements due to COVID-19 outbreaks have reduced the number of workers in meatpacking plants and processing facilities. Additionally, suppliers have struggled to attract workers due to increased unemployment benefits, leading some to leave the industry.
The pandemic has also disrupted transportation and logistics. Truck driver shortages and shipping delays have made it challenging to transport chickens from farms to retailers. Packaging material shortages have further exacerbated these issues, hindering the ability to get chicken products onto shelves.
To address these challenges, industry groups and government agencies implemented various measures. The National Chicken Council advocated for rule changes to increase flexibility in egg and meat production. In the United States, the USDA discussed providing emergency aid, including loans and grants, to support farmers, particularly small and organic producers facing feed supply issues.
While these interventions aimed to mitigate the immediate impacts, there is a growing focus on building resilience into the system. Efforts to boost local feed production, invest in technology upgrades, and diversify sourcing aim to ensure that future shocks, such as labour shortages or export bans, do not lead to widespread chicken shortages.
Although the industry is recovering, with suppliers anticipating improvements in the coming months, the impact of the pandemic on the chicken supply chain has been significant. The interconnected nature of the global trade network means that disruptions in one region can have ripple effects worldwide. As such, continued efforts to enhance resilience and adaptability are crucial to preventing future shortages and ensuring a stable supply of chicken.
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Antibiotic and feed material shortages
The chicken industry has been facing several challenges, including worker shortages, packaging material shortages, and supply chain issues. However, one of the critical issues impacting the industry is the shortage of antibiotics and feed materials.
Antibiotic Shortages
The use of antibiotics in the poultry industry has been a controversial topic. While they have been used prophylactically in the United States, their use for growth promotion was banned in Europe in the 1950s. In recent years, there has been a push to reduce antibiotic use due to public concern and the emergence of antibiotic-resistant bacteria.
In the United States, the Food and Drug Administration (FDA) has played a crucial role in regulating antibiotic use. They have implemented measures such as the Veterinary Feed Directive (VFD), which ensures that antibiotics are administered to food-producing animals only under the supervision and prescription of licensed veterinarians. This directive also requires feed mills and veterinarians to maintain detailed records of antibiotic use. Additionally, certain classes of antibiotics critical to human medicine, such as fluoroquinolones and cephalosporins, have been phased out of chicken production.
The poultry industry has responded to these changes by exploring alternative methods to improve chicken health and reduce the need for antibiotics. These methods include improving hygiene, using enzymes, probiotics, prebiotics, and acids, and utilizing alternatives like ionophores, vaccines, and bacteriophages.
Feed Material Shortages
In addition to antibiotic shortages, the chicken industry is also facing challenges in securing sufficient feed materials. The specific causes of the feed material shortages are not explicitly mentioned in the sources provided. However, it is important to note that the availability and cost of feed can significantly impact the poultry industry.
To address these shortages, farmers may need to explore alternative feed sources or implement strategies to improve feed efficiency. Additionally, the industry may need to focus on disease prevention and overall flock health to reduce the reliance on intensive medical treatment and antibiotics.
In conclusion, the chicken industry is navigating through a challenging period with various shortages and issues impacting their operations. By adapting to alternative methods, improving hygiene, and focusing on flock health, the industry can work towards mitigating the impact of antibiotic and feed material shortages.
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Rising prices for consumers
Chicken is a common dish on many tables, and any shortage can have a significant impact on consumers. While there are no widespread worries of chicken meat shortages affecting markets, there is a possibility of price increases for consumers.
In 2021, the US experienced a chicken shortage due to supply chain issues, labour issues, and the pandemic. This resulted in restaurants raising prices for chicken dishes, with some cancelling special pricing on chicken wings. The law of supply and demand dictates that prices increase when supply is limited, and these costs are passed down the supply chain to the consumer.
Currently, there is a nationwide egg shortage due to the bird flu outbreak, which has caused egg prices to skyrocket. As eggs are a cheap source of protein, consumers may turn to the next cheapest form of protein, such as chicken meat. This shift in demand could lead to a surge in chicken prices. While the risk of bird flu affecting chicken meat supplies is low, there is still a chance of price increases driven by consumer behaviour.
The impact of the Omicron variant on the supply chain has also contributed to rising prices. Omicron disrupted every part of the production process, from warehouses to drivers, and loaders. This, coupled with labour shortages, has resulted in higher prices for processed poultry products, such as chicken tenders.
Additionally, suppliers are facing challenges with bird health issues, high fuel costs, and transportation issues, which will likely result in higher prices for specific cuts of chicken. For example, the demand for small wings is decreasing, while the demand for jumbo and medium wings is increasing, affecting availability and pricing.
Overall, while there may not be a widespread chicken meat shortage, consumers can expect to face rising prices for chicken products due to various factors affecting the supply chain and shifts in consumer demand.
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Frequently asked questions
There was a chicken shortage in 2021 due to supply chain issues, labour shortages, and the Omicron variant. However, suppliers have said that the worst is over and things will improve in the latter half of 2022.
The chicken shortage was caused by a multitude of factors, including supply chain issues, labour shortages, and the Omicron variant.
The Omicron variant is highly contagious, making it especially dangerous for workers in the food processing industry, who often work in tight quarters. This leads to absences that slow down production.
Restaurants have had to increase the price of chicken dishes because it costs more to buy chicken. Some restaurants have also cancelled special pricing on chicken dishes until supply meets demand. Consumers may find it difficult to find chicken for sale.
Consumers can opt for less processed poultry products. If you can’t find chicken tenders, you can buy chicken breast tenderloins instead. If you can’t find individual chicken cuts, try purchasing a whole chicken.
