Shoppers return to local amid coronavirus lockdown

As food processors across the country continue to struggle with supply chain disruptions as a result of the COVID-19 spread, sales at local shops have taken a positive turn.

With planes grounded, coffee shops not grinding, and restaurants closed, the food-service market across Europe has suffered a near total wipe-out.

Food processors have been left to pick up the pieces, looking at redirecting product supplies from the catering trade into other markets – retail being the obvious route. In many cases, it is the only route.

Panic buying

The phased lockdown of society in Ireland and the UK sparked panic buying in retail outlets. Sales of fresh meat and dairy products surged by up to 200% on normal weekly orders.

Sales of mince and burgers as well as chicken fillets were running at record levels, according to one large multiple.

Shoppers, in often cases working from home or not working at all, are shopping local

It would now appear that the surge in panic buying has eased, with food processors reporting to the Irish Farmers Journal that while sales of fresh produce remain up on the same period last year, the route it is travelling has changed.

Shoppers, in often cases working from home or not working at all, are shopping local.

Sales of fresh meat and milk to the traditional local or corner shop have surged in the last week. This has been most acute since the introduction of stricter measures around social distancing and the cocooning of at-risk people.

Butcher trade

As the Irish Farmers Journal reported this week, the butcher trade has been given a boost from shoppers choosing the convenience of local too.

Demand for mince, burgers and chicken fillets are very strong as they cook and store easily.

Milk agents in the south and west of the country are reporting especially high sales volumes of fresh milk and butter into independent and local shops.

Bulk volumes are still high in the retail chains, between 10% and 30% up on last year, but the local shop sales are proportionately higher.

Shortfall

Nothing can, or will, replace the loss of business from the overnight collapse of the food-service business. An often unseen element of the food trade, it is the perfect one for processors. It gives an outlet for both value and volume products.

In terms of meat, it takes large volumes of lower-end cuts like mince while also acting as stable market for steaks. The same is the case of dairy, where fresh milk and butter are used in catering while cheese and creams generate higher returns in the restaurant trade.

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