The coronavirus has massively disrupted the food supply chain. Before the crisis, over half of Americans’ food dollars was spent outside the home, at restaurants and other food service locations Many famers who sold produce to restaurants have now found themselves without a market for their crops, as the food-service industry has largely shuttered.
While farmers would like to sell their excess produce to grocery outlets or donate it to food banks, they’re up against an inflexible supply chain that is specialized for the end customer. Longstanding contracts between farmers, restaurants, schools and grocery stores determine how the crops will be packaged and processed. So it’s just not easy to find new markets and set up new distribution channels.
All this means that mounds of fresh produce are being destroyed or left to rot in the fields. And while the White House announced a billion farm relief package in April, many farmers worry that it won’t be enough.
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Why Farmers Are Destroying Their Crops