That’s the great question of today, isn’t it? I think it’s permanent. In your view is the labor shortage transitory or lasting? Like many industries, people have been given support from government programs, so I think it’s a combination of those factors that have led to tightness in the labor supply. I think you’ve got an impact from the government aid that has come through COVID relief. Immigrant labor was what powers plants and kept the food supply chain up and running. Number two is that immigration constraints have put a crimp on access to labor. They are tough jobs and people have more choices today with a tight labor supply and a lot of different industries looking for labor. Number one is people are choosing not to return to those jobs. What is your view on why there are labor shortages? These are some of the toughest jobs in the nation.
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It is constraining production, not significantly, but it means that you have to run the plant a little slower, not at full capacity. So the labor shortage is going to be more noticeable and more pronounced. One plant might have 2,000 employees over three shifts. North American proteins are still pretty labor intensive businesses.
Is that the meatpacking plants specifically? But by and large, things are working, other than the exception of tight labor supply in North American protein. We do have a lot of touch points in the supply chains: we start with the farmer w here the food is produced, and trucks, rail, barges, ocean transportation to get it to w here it’s consumed or further processed. Like many companies, we’re seeing some labor shortages, particularly in North America, in our animal protein supply chain. (This interview has been condensed and edited for clarity.)Ĭargill touches so many aspects of the supply chain-where are you experiencing shortages or inflation? Subscribe to The Leadership Brief by clicking here. MacLennan recently joined TIME for a video conversation on the challenges of a tight labor market, whether Cargill will ever go public and the future of food. It is also investing heavily in the complex and controversial field of aquaculture, providing fish meal to the growing number of fish farms around the world. For instance, it supplies faux meat maker Beyond Meat with the pea protein used to make its products. In anticipation of that need, Cargill is investing in the development of cell and plant-based protein.
Cargill CEO David MacLennan cites a statistic that global protein demand will increase by about 70% by 2050, as the world population approaches 9 billion people.
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Big food companies are increasingly focused on how to satisfy the world’s growing demand for protein.
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