Just when we thought the hardest period our network would face was behind us, current food supply chain issues and rising costs of food are creating more dilemmas for food banks than at the height of the pandemic.
There are several factors contributing to this nationwide issue, but the bottom line is simply economics: short supply + high demand = increased costs.
All food banks across America are facing this same issue, and here are the primary reasons:
- For more than a year, food costs have spiked while availability of food, especially USDA, has decreased dramatically. USDA truckloads of food, which were plentiful prior to and during the pandemic due to trade wars with China and other countries, have now decreased 20-50%. USDA competes with retail stores to purchase food, and retailers will pay higher dollars for that food. More trucks have been postponed or cancelled than ever in our history. In October alone, we only received about 30% of the pounds we normally average in a month. The pictures in this newsletter show the racks where USDA foods are in our warehouse; normally they’re 50-75% full!
- The food we are purchasing is more expensive and is taking 2-3 months to arrive, instead of 2-3 weeks as in the past. Also, we aren’t able to order as much food because the distributors don’t have it AND because our budget doesn’t purchase as much as it used to. This year, we budgeted a million dollars more for food to cover your shared maintenance and shipping, but that money won’t go as far because of increased food and gas prices. In just our first fiscal quarter (July – September, 25% of the year), GLFB spent 35% of our annual food purchasing budget, which means we will have to raise more funds than we anticipated this year.
- Additionally, retail stores that donate food to GLFB have seen their shelves become barer because of the supply chain issues. Therefore, they are not donating as much food to GLFB as in prior years.
- More than 40% of the world’s grain comes from the Ukraine, and since the war started, shipments have all but halted. Additionally, there has only been two growing seasons in the U.S. since the pandemic started, so there are few raw ingredients to turn into food.
We can, and we will, face this challenge together! But it will take all of us trusting and communicating with each other until the economy and supply chain are under control. We know that you, our agencies, are now seeing approximately 25% more people at your doors than at the start of 2022.
So how do we all make this work until the supply chain and inflation get better? We believe the first step is learning more about the issue. This article from a well-known food banking publication gives more insight: https://foodbanknews.org/food-banks-strategize-against-rising-inflation-declining-aid/
Second, please do not panic and amass food from GLFB! We ask everyone to order cautiously and to not stock up on more food than you will distribute at your next distribution or two so we can keep food flowing to every agency. It also might help to think about a “just-in-time” model to order food though GLFB so every pantry, agency, school, community center, etc. gets some food at no cost to give to neighbors.
GLFB has committed to covering food and delivery costs through this fiscal year, however that has become more expensive than we anticipated because of inflated food costs. Additionally, since you aren’t incurring shared maintenance and shipping costs with us, you may consider using your fundraising dollars to purchase some food elsewhere or seek more food from community food drives until the supply chain fixes itself. Remember, we don’t have to be your only source of food.
If you have questions, please don’t hesitate to reach out to our team. We will keep you updated as we move through this difficult stage in our economy and the food supply chain. But, please be patient and understanding with our team members who are partners with you in this work. In the meantime, thank you for everything you do to serve neighbors of our community on the front lines of mission to end food insecurity!