White House trade adviser Peter Navarro outlines some of the ongoing supply chain initiatives to meet ongoing demands of the corovirus effort. Navarro highlights the cooperation between US government and private enterprise. WATCH:
CTH is spending time on this issue because the food distribution sector is the most important sector in all commerce. Having some familiarity with the supply chain might help people to understand the challenges; and possibly help you locate product.
The Inversion – Big chain markets; those who spent millions developing their own proprietary ‘just-in-time’ distribution networks and automated ordering systems; are currently the least equipped to deal with the level of demand. Meanwhile smaller chains, or mom-and-pops, who rely on third-party brokered distribution are faster to respond.
Several factors have increased retail market demand for food products and non-perishables. People stocking up, kids out of school, some panic shopping (example toilet paper) and now curfews/quarantines have people purchasing more for ‘meals prepared at home’. Add in a level of closed restaurants and the demand on retail food markets is severely stressed.
In major urban areas the larger retailers are unable to keep up with demand. This is creating an outward spread as people drive further and further distances to find their needs. Those who travel a distance ultimately stock-up more; thus the outward spider web-cycle is created. Based on ground reports Atlanta Georgia is a prime example.
Earlier today President Trump held a conference call with a who’s-who of executives in the restaurant industry. One of the key aspects to the call was President Trump asking the CEO’s to continue food service operations despite the dine-in closures. The reason is simple: the alternative, the retail supermarket industry nationwide, cannot compensate for the closure of restaurants in the total food production supply chain. [Ground Reports]
(WHITE HOUSE) – Today, President Donald J. Trump spoke by telephone with restaurant executives representing hundreds of thousands of hardworking Americans about the response to COVID-19. The executives thanked President Trump and his Administration for the whole-of-government response and for his efforts to ensure the public has the most accurate and up-to-date information.
The President reminded the restaurants that they can help flatten the curve and slow the spread of this virus in communities across the country by encouraging their customers to use drive-thru, pickup, or delivery options.
Let me say up front, there’s something very sketchy about the wordy explanations provided by National Institute of Allergy and Infections Diseases (NIAID) Director Dr. Anthony Fauci. Listen/watch or read what he says below.
Encapsulating Dr. Fauci’s position: Data on the coronavirus assembled today doesn’t reflect what is actually taking place today, but rather reflects where we were several days ago…. OK, that part makes sense (there’s a lag).
He then goes on to say what is actually happening today will not be included in data until we arrive at a place a few days from now when today’s reality is quantified. Again, that reasonably makes sense… However….
The media is/are reporting on coronavirus impacts in real time. There is no delay in what the media are reporting from various places around the nation. The media reporting reflects what is taking place today; right now… and what the media is reporting today is not worse than the data Fauci is explaining.
Meaning if Dr. Fauci was correct, and if the coronavirus data (the reports of spread) was behind by several days from the reality of today; then what the media would be reporting (the on the ground reality of the spread today) would be significantly worse (higher incidents) than Fauci’s data, which he claims is lagging several days behind….
The problem with that supposition – The media ground reports do not reflect a higher incidence of coronavirus spread than Fauci’s data today.
The McDonalds USA corporate restaurants, not necessarily all franchises, has announced the closing of all in-house dining and the kids playgrounds. Approximately eight percent of all “food away from home” comes from McDonalds restaurants.
McDONALDS Press Release – “To align with increasing regulations throughout the country, effective at the close of business today, McDonald’s USA company-owned restaurants will close seating areas, including the use of self-service beverage bars and kiosks, and shift our focus to serving customers through Drive-Thru, walk-in take-out and McDelivery.
This decision allows for customers without access to a Drive-Thru and those unable to use McDelivery to continue to have access to McDonald’s.
Additionally, we have made the decision to close all PlayPlaces at U.S. locations, also effective today.
In 2017 Canadian Prime Minister Justin Trudeau famously mocked the U.S. effort to restrict migration by saying Canada welcomes all refugees. However, apparently in 2020 diversity is a Canadian strength, unless there is a possibility a person might be germy.
CANADA – Prime Minister Justin Trudeau announced on Monday that Canada will be closing its borders to foreign travellers in an attempt to limit the spread of the novel coronavirus.
Speaking to reporters from Rideau Cottage in Ottawa, Trudeau said Canada is taking “increasingly aggressive steps” and will be closing its borders to people who are not Canadian citizens or permanent residents of Canada.
White House trade advisor Peter Navarro appears on CNBC to discuss the White House’s response to the coronavirus outbreak, and the administration’s plan to help stimulate the economy.
Navarro gives examples of the public-private partnership working together with logistics of getting critical supplies distributed; also Navarro discusses the importance of timely and targeted stimulus measures. Additionally, Navarro outlines the construct of a likely executive order to shift medical supply manufacturing back to the U.S.
The Big Apple is about to get very interesting… A dense, mostly liberal population, all bound up in close proximity, now instructed by executive order and forced mandatory compliance, to essentially shut down. [Link to NYC Press Releases]
New York Mayor de Blasio – “Our lives are all changing in ways that were unimaginable just a week ago. We are taking a series of actions that we never would have taken otherwise in an effort to save the lives of loved ones and our neighbors.
Now it is time to take yet another drastic step. The virus can spread rapidly through the close interactions New Yorkers have in restaurants, bars and places where we sit close together. We have to break that cycle.”
Effective tomorrow, March 16, New York City schools will close.
“Tomorrow, I will sign an Executive Order limiting restaurants, bars and cafes to food take-out and delivery. Nightclubs, movie theaters, small theater houses, and concert venues must all close. The order will go into effect Tuesday, March 17 at 9:00 AM.”
Right now, today, the retail food supply-chain is trying to recover from previous panic buying. Across the nation grocery stores are wiped out. Warehouses are emptying trying to replenish the stores. The upstream suppliers are trying to resupply the warehouses.
Supermarkets are closing early and opening late while trying to stem panic and fulfill customer demand. Now is exactly the wrong time to limit food choices and push more people into those retail food stores.
No advance notice. No time to prepare or plan… just an immediate order.
Imagine what will happen tomorrow morning in Ohio and Illinois at grocery stores.
Notice these orders from short-sighted governors are in effect almost immediately. Meaning no-one has had the time to prepare for this type of a disruption in the total food supply chain.
These governors do not have any experience, policy framework, or previously established state-wide systems (having been tested through experience) for a process of rapid food distribution as a result of a state emergency. They are flying by the seat of their pants, and taking advice from the wrong people with the wrong priorities and the wrong frame-of-reference.
A government cannot just shut down 30 to 50 percent of the way civil society feeds themselves, without planning and advanced preparation for an alternative. Those who ARE the alternative, the retail food grocers, need time to prepare themselves (and their entire logistical system) for the incredible impact. Without preparation this is a man-made crisis about to get a lot worse.
The White House COVID-19 task force led by Vice President Mike Pence will be holding an update on coronavirus mitigation efforts at 5:00pm. Livestream Links below:
UPDATE: Video Added