That’s the title of a piece I wrote for the City Journal about food system resiliency in the face of COVID-19. A few excerpts are below.
“Food production is not the problem. Farmers’ markets this summer, for example, have struggled because consumers have been reluctant to congregate with others, not because farmers couldn’t grow enough food. In some cases, farmers have dumped tons of milk and produce because anticipated demand for these commodities suddenly disappeared. Unlike other manufacturing systems, plant and animal growth can’t be stopped with the flip of a switch, nor can food-processing chains be quickly reoriented from wholesale to retail production.
While demand for food eaten away from home was falling, demand for food purchased at grocery stores spiked, leading to some empty shelves. Grocery stores can anticipate and plan for peaks in demand, such as the days around Thanksgiving and Christmas, or even regional disruptions related to natural disasters such as hurricanes. Global shocks that occur once a century are impossible to predict or plan for. Pressured to reduce food waste and cost, groceries operate on nearly just-in-time delivery systems. Holding excess inventory is costly, and in the case of fresh produce, wasteful. We can ask grocery stores to store more inventory, but with associated costs.”
Some thoughts on possible solutions …
“To create a more robust food-supply chain, we need to take a thorough look at the legal and regulatory impediments that prevented food from flowing to areas of falling demand to areas of rising demand. In the pandemic’s early days, many locales not only shut down restaurants but also prevented restaurants from selling inventory to consumers because they lacked grocery licenses. Food and Drug Administration rules prevented farms that delivered eggs and egg products to restaurants from diverting supply to grocery stores, for example. Many of these rules were ultimately relaxed, but not until after the worst effects had been felt.
Facilitating markets that utilize prices to signal where food is most needed is vital to ensuring that food supply is not interrupted. While extensive public markets trade in agricultural commodities, trade is less expansive for retail foodstuffs, where supply is often centralized by large food distributors or grocers. Lessons can be learned from food banks that use the power of markets to aggregate information and get food to where it is most desired. Such markets can benefit large and small farms alike. One of my colleagues developed an online market platform for local farmers to connect with consumers facing Covid-19 related closures of farmers’ markets.
More innovation and automation in food distribution and retailing will also limit contagion while facilitating efficient markets. We have become accustomed to self-checkouts at the grocery; robots are already doing a good deal of cow-milking. Driverless cars and trucks could ensure the movement of food while minimizing risk of contagion. Online sales of food for delivery or in-store-pickup will continue to rise; centralized warehouses that stock and deliver directly to our doorsteps can go further to help prevent disease spread. The supermarket of the future may be much smaller and focused on fresh items like meat and vegetables that we want to pick by hand, with processed items coming directly from distribution centers. Developments that improve the shelf life of food will facilitate the development of emergency stockpiles—and reduce food waste.”
You can find the whole thing here.