The Meat Business, a Big Contributor to Climate Change and Epidemics, Faces Major Tests
With meat producers already strained by the trade war with China, and the rise of plant-based alternatives that have become popular with consumers, many processing plants are shutting down.
BRAD PLUMER: America’s meat industry is facing a major upheaval as the coronavirus outbreak deepens. The farmers and ranchers who supply the nation with hamburgers, pork chops, T-bone steaks and chicken fingers now confront several crises at once: Large processing plants are shutting down as workers fall ill, many producers were already strained by the trade war with China, and the sudden rise of plant-based “fake” meat alternatives had been starting to capture Americans’ imaginations. On top of that, the meat business had been attracting growing scrutiny for its climate change consequences in recent years, with scientists and environmentalists urging Americans to eat less meat, particularly beef…
The Covid-19 pandemic could intensify these stresses on the industry, and although it’s still early, here’s how the pressures are playing out: The biggest short-term disruption is the fact that a growing number of meat processing plants — where workers slaughter livestock and package food products — are shutting down as employees get sick from the coronavirus… As processing plants close, farmers and ranchers must keep their cows, pigs and chickens on feedlots or ranches for longer. But that costs them money: Instead of selling their animals for a profit, they must keep shelling out for more feed.
And many of these producers are also getting squeezed from the sudden drop in demand from a major customer — restaurants… The pandemic is already pushing the United States into a deep economic slowdown. And, in the past, recessions have sometimes meant that people eat less meat, at least temporarily… While it’s early days, one possible consequence is that many farmers and ranchers could cut back investment in raising animals for the future. If that happens, and herd sizes end up shrinking, the nation could see a rise in meat prices at the grocery store two years or so down the road…
In recent years, companies like Impossible Foods and Beyond Meat that produce plant-based “fake” meat alternatives have made major inroads — they’re even in chains like Burger King. In 2017 and 2018, investors put more than $13 billion into companies like these as people warmed to the idea of more environmentally sustainable options that don’t taste like the veggie burgers of old. The big question now: Will they become more popular in a time of economic crisis, or less?… Ultimately, a lot could depend on economics. Plant-based meats still tend to cost more, though analysts expect prices to decline over time as new products enter the market. And if the cost of beef, pork or chicken does rise in the coming years, that could tip the balance. SOURCE…
RELATED VIDEO: