Brazil and World
Closure of industries reduces supply and raises price of animal protein in the USA
The United States, a major supplier of animal protein to the world, continues to face problems in production. Due to Covid-19, which closed industries and reduced the number of employees in most of them, the country is experiencing difficulties in domestic supply and the prices of beef and pork are rising.
According to a text released by Bloomberg, more than 4,900 US slaughterhouse workers were diagnosed with the disease, which reduced the slaughter capacity of pigs by 25% and caused a 51% increase in wholesale prices for this protein.
Wholesale beef prices reached a record high on May 4th. Pork prices are the highest since 2014.
In addition to the impact on prices and the increased risk of scarcity of the product, there is also a loss on farms, given that many animals are beginning to be slaughtered due to low demand.
According to the US Department of Agriculture, slaughterhouses will reopen in a matter of days, but there will be a limitation in production, due to social distancing measures. The deficit in production may continue to reach 15%, even after the reopening of the plants.