CTH has covered the origin of food inflation since we first raised the alarms in the spring of 2020. A confluence of events starting with the fracturing of the food supply chain (shutting down restaurants, hospitality venues, schools, cafeterias, etc), created the initial major problem. Consumer Packaged Goods (CPG) sold at retail stores could not keep up with demand after 50% of the food supply system was shut down.
Within the U.S. retail food supply chain (350+ million people), manufacturing CPG products relies on a system of staying one to two harvest cycles ahead of demand. However, when restaurants and fresh food venues were closed, very quickly frozen, bulk stored and siloed U.S. food storage systems, the storage needed for CPG products, were emptied. more