why are farmers destroying crops instead of seeling them to the comanies that need them?
famers are destroying eggs,milk and grains because they can't send them to restarunts,ok why are they not just selling them directly to people who need them or fast food stores or markets instead of useing a clearly useless supply line?
- random_manLv 71 month agoFavorite Answer
Hello - I'm not sure where you are located. I'll answer for the United States, although I imagine the situation is similar elsewhere - there are a number of reasons, and it's a bit complicated. But the short answer is that our supply chains have evolved to serve a certain status quo - namely that Americans, prior to COVID-19 ate about half of their meals outside the home - i.e. institutions, restaurants, schools.
This situation was turned completely on it's head in the space of just a few weeks due to COVID. So what happened was fully half of our food supply suddenly had no where to go.
Supermarket sales increased, but it's not an easy switchover, and certain products sell better to food service markets, than they do to grocery stores.
As an example: Dairy - certain products, i.e. cheese, sells more to food service, and fluid milk sells more to grocery stores. And about 15-18% is exported in the form of butter, cheese, and powder. Each of these markets requires different processing and packaging, and plants can't switch over easily or quickly. So we have a situation where we have a surplus of some products and shortages of others. A lot of product is being donated, but it all requires processing, and there are bottlenecks in certain processing plants. So, some milk has been dumped. Although there has been a lot of headlines about milk being dumped, keep in mind it's still less than 1% of production.
I assure you that farmers are not dumping product out of any kind of nefarious intent. Farmers would by far prefer to see their product sold, and if that's not possible, to be donated to some good purpose. But it doesn't always work out. Supply chains are adapting as quickly as possible but it's a real challenge. A lot of agricultural products require processing and packaging even for donation, and a lot of charities aren't equipped to handle certain products.
- Spock (rhp)Lv 71 month ago
farmers don't have the ability to do that ... their quantity is usually truckloads at a time. The way the industry is structured, major buyers and food brokers buy truckloads of products and then distribute to smaller units like stores. but the stores already had their established supply lines -- which as still working just fine. Volume via the stores is up some and their people are using established relationships to fill it. established relationships have value in this -- they offer the stores an assurance of quality
- dewcoonsLv 71 month ago
1) Regulations will not let them sell to stores or fast food. There is no way to inspect those eggs, milk, etc. So it is a health hazard. They are not allowed to do that.
2) They can sell them at a farmer's market or some place like that. But for them to make a profit, they have to sell hundreds of eggs every day. At a market they might sell a couple hundred. But there is no way they can sell the number of eggs or gallons of milk they are getting every day.
3) Farmers are doing what they can with products. May of them are finding ways to donate then to charities, soup kitchens, etc. They are giving them to friends neighbors, etc. But again, regulations limit what they do.
4) You are correct that the supply chain is broken. But there is no way for an individual farmer to fix that. He can not run his farm and also spend all day trying to get his products into the hands of someone who can use them. Plus there is the expense to get them to the people. And there are health regulations that will not let them do that.
- Anonymous1 month ago
There are no trucks to transport them or processing plants. If it was that easy, why wouldn't the companies be lining up outside the farmers front doors? You don't think too much do you?
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- yLv 71 month ago
Contacts, already established supply chains, communication. Things of that nature prevent some of these farmers from connecting with outlets that could be selling their products. Then you also have to factor in what insurance will pay them verse the options of outlets they are presently being given.