Huddle Notes from April 13th, 2020

    The huddles this week focused on funding updates and emerging supply chain problems. In addition, participants shared a terrific list of resources that consultants and companies will find really valuable. We’ve included all of these at the end of this summary.

    Talking Points

    Trends

    • Lost 5% of pork in US to close of Smithfield plant in South Dakota
    • Not a stay at home issue, an issue with how processing facilities are set up. It could get worse if/when we open the economy back up.
    • Risk associated going to one plant for slaughter, farmers should start diversifying their processing ASAP if at all possible.
    • Small Grain Mills: Specialty mills are experiencing record orders and insufficient processing capacity. May not have wheat because they’re mostly specialty and organic grains. Not a shortage of conventional wheat.
    • Retail Distributors: Are not getting non-essential products onto trucks so products are stuck in warehouses because distributors are prioritizing essential items with big clients. Additionally, dock workers and copackers are hard to find right now.
    • Farms: Some are plowing crops under because they have lost their food service customers and it’s cheaper than harvesting with no buyer.
      • Farm worker distancing is an issue because workers live close together, work close together, and a lot are undocumented – huge risk factor for farm workforce.
    • Food Pantries: Huge lines and most are not set up to take fresh produce to help take in the excess produce farmers are tilling under. There’s a huge opportunity for a pragmatic social entrepreneurship initiative here. Livingston Food Resource Center is a model:
    • Large Companies: Starting to feel the pain from not being able to source ingredients from overseas. Labor issues with unloading and loading shipping containers in other countries. Shipping containers are getting stuck on the wrong side of the ocean. (For ex.., Pork ships to Asia, backhaul is manufactured products. When we’re not importing manufacturing products, the containers get stuck in the wrong place).
      • Some direct farms and brands with online sales are up 400%-500%
      • Organic Valley is doing well and over there is a demand for organic milk
        • Dumping of conventional milk is happening in more states than usual
      • Dairy Farmers of Wisconsin ask if you run into any examples of milk rationing and/or empty cheese shelves to please contact them

    Tips

    • Focus on Innovative Business Development
      • Strategic relationship building to get businesses to evolve. Direct to consumer is booming right now! How can we help companies, farmers and consumers connect with each other?
      • Blockchain is being used by large companies to monitor world-wide supply chain availability, cash position, and to look at the big picture and avoid breakdowns. What does a simpler model of this look like?
      • Could CSAs start earlier by selling other products or creating partnerships with farms in other states? We could be direct marketing vegs from other states to consumers right now….

    Immediate Next Steps