U.S. Beef Shortage Adds To The U.S. Becoming A 3rd World Nation

Survivors may want to prepare for another potential supply problem – beef this time. Read all about the US beef shortage so you are better prepared for this crisis situation.

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US beef shortage | What you need to know

Why is there a beef shortage in the US?

In short, the US, Australia and other large countries around the world are currently suffering from a beef shortage.

The reason is a cyber attack on the world’s largest meat producer JBS. This caused the Brazilian company to close its processing plants in Australia and North America.

According to CNN, a United Food and Commercial Workers International Union official said the company had closed all of its beef factories in the United States. The U.S. Department of Agriculture is also working with other processors to ensure stable supplies.

The office has stated that it has reached out to other meat processors in the country to ask them to accommodate the additional capacity. In their opinion, this allows the supply chain to move on unchecked.

Unfortunately, even a day of disruption in the industry can lead not only to a scarcer supply of meat, but also to higher prices. It can also increase the prices and supply of other meat products such as poultry and pork.

The report goes on to say that, according to raw material price experts from the Steiner Consulting Group, the topic is a big one. The effects depend heavily on how long the problem lasts.

Why is there a shortage of beef and chicken?

Empty poultry aisle |  Lack of beef

Aside from the beef shortage in the country, the US is also experiencing a poultry shortage. According to Arkansas-based poultry processor Tyson Foods, that’s because roosters aren’t producing the number of chicks the company would have estimated.

Like JBS, Tyson Foods is one of the world’s largest processors of chicken, beef and other meat products. Breeding companies supply chickens and roosters to chicken producers like Tyson. These companies, in turn, breed them and hatch the chicken eggs for poultry.

In this case, Tyson also owns the Cobb-Vantress breeding company, which supplies them with roosters and hens. The company stated that switching to a different breed of chicken that will fertilize the eggs resulted in poultry shortages.

Tyson Foods took this step because these taps supposedly improved the quality of the meat. Unfortunately, they later found that eggs fertilized by these roosters were less likely to hatch.

According to the New York Post, Donnie King, president of Tyson Foods’ poultry business, admitted switching to the new male type was “a bad decision.” The executive also added that they are working to replace the taps soon, although they expect the supply bottleneck to continue until next year.

King also found that their breeding problems were only half of the supply problem. The sudden surge in demand for poultry accounted for the other half of the decline in supply.

He added that the winter storm that hit Texas, as well as worker absenteeism, are also adding to the supply problems.

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Will JBS shut down?

JBS Brazil |  Lack of beef

The cyber attack caused JBS to shut down several of its beef processing plants. In the United States alone, the company had to cease operations in nine beef processing plants. However, most of their facilities are back in operation after paying the hackers a ransom of $ 11 million in Bitcoin.

The company decided to pay the hackers after consulting outside cybersecurity experts as well as its own technicians. They decided to pay the ransom to make sure the cyber criminals didn’t steal the data.

According to The Washington Post, investigations by the FBI led them to believe that the attack was orchestrated by the Russian ransomware group REvil or Sodinokibi.

Such attacks on high profile targets have become more common over the past two years. Cyber ​​criminals carried out a similar attack on the Colonial Pipeline, which also resulted in bottlenecks and long lines at gas pumps all over the east coast.

The attack on Colonial has put government regulators on a frenzy to combat cybersecurity threats in both the private and public sectors. It also forced Colonial to pay the cyber criminals $ 4.3 million in bitcoin.

In the US, ransomware victims paid a total of $ 412 million in 2020 alone. Experts believe the real number is much higher as some victims stop reporting their payments. Destinations included a wide variety of profiles, from travelers to gas buyers to cancer patients.

Why is the price of beef rising?

Financial crisis |  Lack of beef

Prior to the pandemic, most Americans may have easily dismissed the idea of ​​a beef shortage, or any kind of shortage. However, the COVID-19 crisis has exposed the many restrictions in the country’s meat supply chain.

As the pandemic spread, meat processing plant workers became ill. This led to the temporary closure of several meat packaging plants. In turn, meat prices soared and a shortage of meat of all kinds has been observed across the country.

The prospect of even more bottlenecks is ringing the alarm bells among consumers today. This is especially true given that they paid more for meat even before the JBS cyberattack and Tyson Foods’ problem experience.

May 2021, meat prices rose by 6.1 percent compared to the same period of the previous year. Chicken and pork prices also rose 4 and 2.6 percent, respectively.

The cyberattacks on JBS coupled with the hits in the production of Tyson Foods as well as the increasing demand for meat have all led to a sudden increase in the price of beef, poultry and other meat products.

Is the US beef shortage a symptom of an in-depth general food shortage in the country? Check out this video courtesy of the Epic Economist and find out:

https://www.youtube.com/watch?v=zLGpu1684GU

Beef shortage is just one of many problems the country is currently facing in terms of meat supplies. To better prepare for future crisis situations, keep the above things in mind as you prepare for potential future bottlenecks.

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Macallister Anderson

I am by no means an expert in every aspect of this stuff. I plan to learn, and when possible, enlist the help of experts in various fields to come together and offer their knowledge. In a few years, I dream that this site will be a virtual survival encyclopedia and allow a total novice to come on here and be supplied with everything they need to prepare for anything.

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