Tyson Foods Warns About Supply Chain 1:23
(CNN Business) – Starting Monday, Costco began implementing purchase limits on fresh meat, due to the slowdown in processing plants during the coronavirus pandemic. Its decision is in addition to other similar measures that have been taken by different retail chains.
Costco announced that buyers will only be able to purchase three beef, pork and poultry products “helping to ensure that more members can buy the merchandise they want and need.”
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Kroger, the largest supermarket chain in the United States, announced a similar rule last week. The limits are due to high demand from buyers, while the main meat suppliers have temporarily closed their factories because the workers have been infected.
The United Food and Commercial Workers International union estimated last week that at least 20 meatpacking and food processing workers have died so far. The organization also noted that the closings have resulted in a 25% reduction in pork capacity and a 10% reduction in beef capacity. President Donald Trump recently signed a decree designed to keep meat plants open during the crisis.
Trump orders not to close meat processing plants 2:09
Now Tyson Foods warned Monday that it expects more meat plant closings this year. The company also said it will continue to produce less meat than usual as workers refrain from attending work during the outbreak. The pandemic has halved pork processing capacity in the country, Tyson said in his earnings report.
Costco has implemented several changes since the pandemic began in mid-March. It has adjusted hours, has limited the number of people its members can bring, and requires shoppers to wear face masks inside their stores.
Nathaniel Meyersohn and Danielle Wiener-Bronner of CNN Business contributed to the writing of this story.
