2022 Food Industry Outlook: Tackling Challenges and Change with Collaboration and Innovation

Caring for Animals & Creating Trust in Food

As we enter a third year of the COVID-19 pandemic, the agriculture industry continues to face more challenges and change. The U.S. Beef Industry is balancing strong market prices with lower cattle numbers and higher costs for labor, transportation, and feed while also managing international shifts and workforce shortages. On the retail side of the food value chain, finding workers remains the top foodservice challenge coupled with keeping shelves stocked amid ongoing supply chain struggles. Meanwhile, at the center of the food industry focus is on the ever-evolving consumer who is looking at food differently. In addition to filling empty bellies, consumers are increasingly using food to improve their health and they want transparency and sustainability. It’s a tall order for the industry to address.

MSD is committed to the well-being of our communities, our employees, and our customers. In this episode, Jane Dukes, Associate Director of Value Chain & Consumers Affairs, speaks with Jessica Clowser Burkham, the Beef Alliance Managing Director and Craig Wilson, Vice President, QA & Food Safety from Costco to try to address some of these ongoing challenges.

“The (Beef) Alliance prides ourselves on being forward-thinking in the industry and identifying and dealing with these industry disruptions. We want to utilize our size. We are the biggest, so we'll definitely want to use that to positively influence not only policy, but business partner relationships with our packers, retailers and food service and address industry trends to foster some long term viability while essentially delivering high quality and nutritious products.” - Jessica Clowser Burkham

Ongoing food value chain challenges for discussion:

• How can collaboration from producer to retailer help all segments of the industry adapt and advance?
• Where can we leverage innovation to help navigate these new challenges?
• And how can we pivot to meet new consumer demands in this ever-changing environment?

It would appear that no matter which sector of the food value chain you call home, we share similar challenges. Inflation driving food prices up and in some cases consumer demand down, labor and the lack of available workers, and ongoing supply chain issues which impact product availability and evolving consumer preferences and demands.

We have really strong collaboration where we know what (our suppliers) do. We set some expectations, they set some expectations and we work together to get that great product that our members want. Because at the end of the day…being able to provide our Costco members with great prices on great products all the time. And that takes very close collaboration all the way down to the feed yards, all the way back up to where the cattle are converted and broken into the cuts that we need… And it's the same on the produce side. We want to work directly with growers on quality, delivery, and that whole supply chain to make sure that our members are getting what they want. - Craig Wilson

This Week’s Podcast:

• Meet Jessica Clowser Burkham, the Beef Alliance Managing Director and Craig Wilson, Vice President, QA & Food Safety from Costco
• Explore how retailers and producers have adapted over the course of the pandemic and what challenges they will face going forward
• Discover ongoing innovation pushing the industry forward across the food chain
• Learn the impact of the consumers demands on the ongoing pursuit of sustainability and food value chain transparency