Are Food Riots About To Hit the US?
Are you ready to have to fight for your groceries? Or even be able to find groceries?
The weather’s played a big role in driving the shortages. In agricultural markets, uncertainty over how long the war in Ukraine will hinder grain shipments out of the Black Sea region is intensifying pressure on farmers to produce bumper harvests. That’s putting an even bigger spotlight than usual on the outlook for drought, flooding and other events that could impact supplies.
There are a number of variables at play in the grocery shortages we’re seeing this year. “It is a combination of factors: supply chain issues and driver shortages, scarcity of packaging, labor shortages at manufacturing and production plants as the workforce has not returned as facilities restarted from COVID closures,” Keith Daniels of Carl Marks Advisors told us. And, yes, COVID-19 plays a huge role, especially the latest variants.
“Omicron infections impacting employees reporting to work at manufacturing and grocery stores, higher demand from consumers — particularly impacting the last few weeks as consumers revert to eating at home from restaurants out of fears of Omicron,” Daniels said. “The recent, abrupt winter weather is also slowing down distribution.”
