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Schools Experiencing Difficulty in Sourcing Foods and Ingredients

01/31/2022

According to an article by Jesse Newman and Jaewon Kang in Reuters some school districts are experiencing difficulty in obtaining necessary supplies.  This is despite increased funding from the USDA for school-meal programs with additional tranches be disbursed in January 2022.

The problem relates to COVID that brought about a shift in the relative volumes of products sold to the retail market and to institutional buyers.  Faced with increased demand from supermarkets and groceries, food manufacturers shifted product to consumer packs to the detriment of institutional buyers including school systems.  Various manufacturers have experienced difficulty in maintaining production volumes due to absenteeism and in the case of some companies including Kelloggs, strikes closed plants.  Gradually production problems are being resolved and supply should soon be adequate.