There is a tremendous amount of information and misinformation surrounding the current status of protein processing within the meat industry. Most of the misinformation comes from many people not understanding the total food supply-chain and how it works.
First, there is no shortage of meat protein products: beef, pork and chicken at the farm level. However, the problems arise within processing, manufacturing and more importantly binding legal contracts and liabilities within the supply-chain. Additionally, there are national and multinational aspects to the protein food supply.
Today President Trump remarked the White House and Dept of Agriculture are drawing up a plan for the president to invoke the defense production act as a tool to cut through some of the liabilities present within the supply-chain dynamic. Let’s use cattle to explain.
Because beef is a “graded” commodity, there are contracts for purchase within the supply chain. USDA Prime, USDA Choice and USDA Select are three well known grades of beef. However, there are eight grades total: prime, choice, select, standard, commercial, utility, cutter and canner.
Within the total food supply there are contracts for exclusive product purchasing in both the commercial and consumer side of the food supply. Additionally, the commercial side breaks down into ‘food-away-from-home’ (ie. restaurants), and manufactured food.






