COVID-related labor shortages stress poultry supply chain

Labor shortages are one of the biggest issues facing poultry retail, foodservice and processing.

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Labor shortages are one of the biggest issues facing poultry retail, foodservice and processing.

“You will hear in the media that [labor shortages] are due to federal or state benefits, but that’s really simplifying it down too much,” Kevin Ryan, CEO, Malachite Strategy and Research, said during the Consumer Trust Insights Summit.

He noted that even in states that have discontinued the extra unemployment benefits, there have not been significant changes to the labor market.

Instead, many of those who have recently left the poultry retail, foodservice and processing industries have cited pandemic burnout and childcare issues as the primary reasons for finding a new job.

“These are folks that have had to work on the front lines and by that, I mean, they’re working in a restaurant, they’re short staffed and they’re working long hours and it’s just burning them out,” Ryan explained. 

In addition, “because of shutdowns in childcare, it’s difficult for folks to have a schedule that allows them to go to work and have a child,” he added.

Labor shortages are spurring increases to the minimum wage and incentives for employment to attract workers to fill open positions.

Automation to the rescue?

The poultry supply chain has been slowly moving toward automation and robotics to solve labor issues for a few years. The challenges associated with COVID-19 has accelerated the trend.

“In the long term, you are seeing a lot more manufacturers investing in automation, said Ryan. “You’re seeing meat consumption rise at the sample time you’re seeing a lack of ability to get workers in these locations.”

For example, Tyson Ventures, the venture capital arm of Tyson Foods, recently participated in a $10 million funding round to help bring Soft Robotics, an artificial intelligence robotics solution designed to automate poultry processing, to market.

Automation won’t replace the need for skilled workers. Grocery will still need workers behind the meat counters. In processing plants, those who can do specialty cuts are hard to train and will still be retained. The ultimate goal is not to entirely replace workers at meat and poultry processing plants, but instead to find ways to augment or enhance the worker experience.

View our continuing coverage of the coronavirus/COVID-19 pandemic.

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