For the US Meat Export Federation’s (USMEF) member companies, the top supply chain challenges in 2022 are likely to remain transportation capacity and plant-level labor.
Labor was already in short supply even before COVID-19, and the pandemic has made finding and retaining staff even more difficult. Port congestion is the most visible transportation challenge and the most difficult to overcome, but trucking issues — including a lack of available drivers, chassis, and containers — are also impacting exporters’ ability to deliver meat products to foreign markets.
USMEF is pleased to see heightened efforts by maritime regulators, legislators, and the White House to address congestion at the ports, but progress will depend on many factors. It is essential that surging volumes of imported goods make their way into the market more quickly and efficiently, so that export cargo, including red meat destined for Asia and other key regions, can be shipped on a consistent schedule.
Although US red meat exports are moving at a record pace in 2021, international customers are increasingly concerned about securing products in a timely manner, and the country’s reputation as a reliable supplier is at risk.
Since the onset of the pandemic, e-commerce has certainly played a larger role in the growth of red meat exports. Prior to COVID-19, -customers in certain markets like South Korea were already well-versed in making online purchases of a wide range of food items. But with travel and commerce restrictions in place, online buying increased greatly in other Asian markets and gained remarkable traction for the first time in regions such as Central and South America.
In fact, many distributors who had mainly marketed products to retail and foodservice purchasing managers began appealing directly to consumers. This is a trend we expect to continue to gain momentum in 2022 and beyond.