- Stock futures shiver as meat shortages threaten to panic consumers and cause stagflation in America’s economy.
- Multiple meat processing plants are closing due to coronavirus outbreaks. And the situation is spiraling out of control.
- Pork belly futures have doubled in the last four days, and prices at the supermarket could soon go through the roof.
Did you think the toilet paper shortages were bad? Wait until Americans clear the store shelves of pork, chicken, and beef.
Meat processing plants across the country are shutting their doors as coronavirus outbreaks sicken and kill their workers. Tyson’s Waterloo Iowa plant, the company’s biggest pork plant, is the latest domino to fall. And the impacts of this crisis may soon hit a supermarket near you.
Stock market futures are in the red after a strong Wednesday close. Tyson (NYSE: TSN) stock is down by 3.21% as the market comes to grips with this terrifying crisis. Other affected stocks include Hormel Foods (NYSE: HRL) whch fell 1.08% and Pilgrims Pride (NASDAQ: PPC) which bucked the trend with a 5.46% rally.
America’s Largest Meat Processors are Closing
America’s food crisis is spiraling out of control as meat processing plants across the country suspend operations amid the coronavirus pandemic. At least seven massive U.S. meat facilities have shut their doors in a matter of weeks. And Tyson’s Waterloo, Iowa pork plant is the latest domino to fall.
The facility processes 19,500 hogs per day which is equivalent to 4% of America’s entire pork processing capacity. It employed 2,800 people but had to shut its doors after 182 employees fell ill with the coronavirus. Earlier in the month, Smithfield Foods closed its Sioux Falls plant which supplied 4-5% of America’s pork processing capacity. The company’s CEO Kenneth M. Sullivan had this to say about the situation: