Pandemic's impact on restaurants could spell trouble for meat industry - Entrepreneur Generations

Restaurant closures and shifting consumer eating habits during the pandemic could cause turbulence in the meat industry.

Food service has traditionally accounted for 55-60% of all meat demand, but people have been cooking at home more because of the pandemic. Though meat demand remains strong, "long-term concerns of how consumers will react to limited options will continue to add uncertainty to beef, pork and poultry prices and have a significant impact on livestock markets and producers during the upcoming year," Rick Kment reports for DTN/The Progressive Farmer. "Even though strong retail demand is expected to continue over the coming months, the transition back to 'normal' lives is expected to add even more uncertainty to the meat complex, but also could cause long-term market disruptions for years to come."

The meat industry has been able to bounce back from early pandemic levels over the past few months, but "concerns about the strength of demand through 2021 continue to grow," Kment reports. "The health and stability of the food service industry is expected to have an even bigger impact on overall meat demand during 2021."

As of Dec. 1, 17 percent of restaurants — more than 110,000 establishments — have closed permanently or long-term during the pandemic, according to a National Restaurant Association study. Most of them were "well-established," with an average of 16 years in operation, Kment reports. Another NRA study in early December found that total food and drink sales fell $2 billion in November, down nearly $12 billion from pre-pandemic levels. In the same survey, 83% of restaurant operators said they expect sales to decrease in the coming months.

from The Rural Blog https://ift.tt/2KhyCyQ Pandemic's impact on restaurants could spell trouble for meat industry - Entrepreneur Generations

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