We were collectively shocked by the Covid-19 crisis that disrupted the food industry. We didn’t see it coming and we weren’t prepared for the long-lasting, widespread repercussions of that crisis, including product and labor shortages, supply chain disruptions and record-setting inflation.
Many food businesses were reliant on certain suppliers, and if they couldn’t deliver necessary products, companies either had to go without or scramble to find an alternate solution. As an industry, we were reactive—not proactive—to the pandemic and the ensuing fallout.
Now that we have some perspective, a big takeaway is that food businesses need to have better backup plans to address supply chain disruptions, product shortages and delays. This is especially important because:
- Extreme weather is causing crop failures, livestock deaths and suboptimal soil conditions, resulting in more world hunger. Extreme drought conditions are destroying produce out west, including in California, a region that grows significant amounts of produce to ship nationwide. The Midwest, which produces approximately three-quarters of our country’s corn supply, is facing the opposite problem, as frequent floods wash away precious soil. Europe’s record-setting heat is torching vegetation, while India is pausing exports because of a severe heat wave.