On Tuesday evening, a United Food and Commercial Workers union official said all JBS U.S. beef factories were closed. JBS did not immediately respond to a request for comment.
Do the consequences of the attack mean a scarcer supply of meat and thus higher prices? According to experts, that depends on how quickly the problem is solved.
“Just one day of disruption will have a significant impact on the beef market and wholesale prices of beef,” wrote the Steiner Consulting Group, which specializes in raw material prices, in a statement on Tuesday.
That’s partly due to the high demand for burgers and other beef products on Memorial Day Weekend.
“Retailers and beef processors are coming in from a long weekend and need to catch up on orders and make sure the meat crate is full. If they suddenly get a call that the product may not be delivered tomorrow or this week, it will be very challenging.” “, Explained Steiner.
The attack could also “limit the availability of pork and drive up pork prices in the short term,” Steiner said. The group noted that “we think this is a big problem, but much will depend on how long the disruption lasts.”
Steve Meyer, an economist at raw materials firm Kerns and Associates, agreed that a one or two day hiatus could lead to a surge in wholesale meat prices. But if the problem is resolved within a few days, restaurants and grocery stores are unlikely to pass these costs on to consumers.
“They would probably absorb them in the short term,” said Meyer. “As long as there was light at the end of the tunnel.”
If the return to normal takes longer, say a few weeks, customers could feel the effects.
“Then you will likely have some buyers who depend on JBS for their supplies, which could probably be a scarce product,” he said. In that case, it would depend on where their local grocery store gets its meat for consumers. “If you buy it from JBS, you might see some bottlenecks. If you don’t buy it from JBS, you might not see anything at all.”
Now the prospect of more bottlenecks could sound alarm bells among consumers, especially as they are already paying more for meat: Beef prices rose in the 17 weeks leading up to 1. the latest figures from NielsenIQ, which tracks point-of-sale data from retailers. Chicken prices rose 4% and pork prices rose 2.6%.
– CNN’s Nathaniel Meyersohn, Alexis Benveniste and Brian Fung contributed to this report.
Read Also :