Like It Or Not We’re ALL At The Mercy Of Food Supply Chains

Today I’m going to talk about the modern day food supply chain and why it’s way more fragile than you think….

Watch the video below OR skip past to read the transcript:

You see, I grew up on a farm in Iowa. So, I was a part of the modern day supply chain for 18 years of my life. Then after college, I worked 10 years as an Engineer at a major food manufacturer.

So for 28 years I’ve seen how distribution food worked, first from farm to factory and then from factory to grocer.

And if this distribution system were to become compromised for an extended period, well, our society will suffer. You’ll suffer. We’ll all suffer.

Why? Because we ALL need to consume lots of food on a regular basis to survive. And very few of us grow enough food on our own to survive long.

Sure, you might have a backyard garden, but that’s not going to last long if the food supply chain stops. And even if you have a large food stockpile, most folks will burn through that in a few weeks or months.

So, let’s get into what makes food supply chains so susceptible to disruption.

Supply Chain Inventories (Durable Goods vs Food)

First lets me ask a question:

What happens when you combine “limited inventories” with “bottlenecks issues” in a supply chain? Well, if those issues (inventories and bottlenecks) get a bit out of whack (but not disastrous), you end up with inflation and some shortages.

No matter the product, if demand outstrips the ability to supply, well, “goods” must go up in price. IF you can even get the goods at all…

For example, right now, the demand for the latest video game console – the PS5 – is in very high. And due to very limited supply of silicone – a necessary ingredient to build chips and processors for this tech, you end up either:

• Paying through the nose on secondary markets.
• Or you must hit up targets and Walmart’s daily to try to snag one before they are gone in minutes.
• Or you go without

But what IF we we’re not talking about a video game console and instead we’re talking about something you can’t delay purchase of (at least for long). I’m talking about FOOD.

Humans can’t put off buying food for very long.

For example, without any stockpiles, you can make it month, perhaps 60 days, before your die.

But things will get desperate WAY before that. I’m talking days – or even as little as 72 hours before widespread panic ensues.

So a steady demand of foods is necessary for modern society. We ALL must go to the grocery store at some regular frequency. It’s not an option. You can’t just not eat for 6 months.

You eat or you die – its simple math.

Why Can’t Grocery Stores Just Increase Their Inventories?

Now. one way to combat this reality (this built-in constant demand for food) is for grocery stores to stockpile more of it. It’s called slack. Larger grocery store inventories help absorb disruptions.

So why don’t grocery stores do this? Well, there are two problems with this approach; expiration dates and margins.

1. Food Expiration Dates

First, food is not a like phones or computers. Food spoils. That’s one reason why grocery stores can only hold so much “extra” food.

And the best, high quality, fresh foods spoil the fastest.

Honestly, if a food doesn’t spoil, it’s usually void of the best nutrients and stuffed full of preservatives.

The one big exception to that rule is Freeze Dried Foods. These meals can be fairly nutritious and are shelf stable for decades. But grocery stores don’t tend to sell those. Specialty survival food vendors focus on those, because it’s expensive to freeze dry foods, and fresh food tastes better.

So, they tend to leave freeze dried meals for folks who are into preparedness. Not for the masses.

Sure, grocery stores sell rice and pasta. These are dried grains you can buy and stockpile. But those are just simple carbs – easy calories.

They’re void of essential vitamins and proteins your body needs over the long haul. While freeze dried meals, tend to have those veggies and nutrients in their meals.

But the bottom line is because most food expires; grocery stores cannot keep large inventories “just in case”. If they did, they’d risk much of it becoming waste during normal operations.

Spoilage is bad for business.

So grocery stores are forced to keep their extra inventories as low as they can. That’s why grocery stores require CONSTANT food delivery’s.

Every day, trucks full of food come to the back of grocery stores to unload.

2. Margins

The other problem with a grocery store trying to increasing their onsite inventories is it goes against capitalisms “just-in-time” high efficiency, maximum profits, business approach.

You see, carrying extra inventories, is expensive – especially for large grocery store chains. Even a little bit of extra cheese, milk, meat, or bread quickly becomes extra “working capital” that must be used to create these “extra” inventories.

Working capital is money that is necessary to run everyday business operations. And at large scales this can cost multiple millions of dollars. Dollars that cannot be used for other things like expansion projects, marketing, or paying out dividends.

So any grocery store that carries any “extra” inventory – may have to raise its prices on the food to make up for the inefficiencies. BUT higher prices tends to be a big loser in the mind of the consumer.

Price consciences shoppers will not pay much more at Store X if they can get it for a lot cheaper at Store Y.

And if consumers go to another store, that means the “extra” inventories Store X has in place, will move (or rotate) slower. And as we discussed in the first point, quality food has a relatively short expiration date.

So having food sit in storage for a few extra days, means more items that never get sold and become more waste (literal waste and financial waste).

Grocery Stores Are More Fragile Than You Think

So, the grocery store supply chain CAN’T stockpile extra food for surprise runs on their inventories. IF demand spikes overnight, they cannot move fast enough to make up the difference.

For these two reasons, grocery stores are FRAGILE.

Yet, society acts as if they will always be fully stocked because, day in and day out over our lifetimes, that’s what HAS been our collective experience.

But what IF supply dried up for longer than a few days? What if, grocery store shelves were limited for weeks?

Well, then grocery stores will get squeezed from both ends at the same time supply and demand. Why? Because empty shelves create panic. So demand will spike BECAUSE of supply constraints.

Events That Could Cause A Massive Supply Side Food Disruption

There are two main potential bottlenecks that could crush the supply chain.

Production and delivery.

1. Production

If farms where not able to produce the same yields due to draughts or topsoil erosion, then less food would be available – and prices would rise. This would likely be a slow crisis.

Not many disasters could stop ALL food production at once – unless an asteroid hit or we saw a nuclear winter. Possible? yes. Likely? Who knows…?

But the other bottleneck is delivery of these goods. I’m talking about trucks and truckers.

How could the delivery system fail?

• How about a massive EMP that fries the onboard computer systems of most trains and trucks in an instant?
• Or perhaps a super massive volcanic explosion where ash would get into many trucks air intakes and ruin the engines?
• Or perhaps, nuclear war would force so many truckers to hunker down to avoid driving through areas contaminated with nuclear fallout?

And while each of those is possible, they seem to me to be on the long tail, rare event side of things.

2. Distribution

But there’s one more event that is much more likely, yet could be just as dangerous? Heck, it’s one we’re starting to see play out now, today, before our very eyes…

What if a mass of TRUCKERS on strike?

If truckers were to strike IN MASS, they could bring our food supply to its knees. If raw grains, meats, chesses, can’t get from farm to factory or from farm to grocer. Well, it wouldn’t take long for real food scarcity to hit.

And once food scarcity became a real narrative, folks would run out and stock up FAST. And boom, the grocery store shelves are empty and not getting refilled anytime soon.

Once that happens, society is only 72 hours from some real pain and panic. Perhaps even a “collapse”.

If you want to see true societal panic and chaos? Starve a majority of citizens for a week or so…

That’ll get everyone’s attention, right?

Now guess who’s currently on strike in Canada? Truckers.

Is this disruption enough to cause problems with Canadian supply chains? I think so. Is it enough to cause starvation level supply chain issues – probably not….at least not yet.

But is it a harbinger of things to come? Could poor relations between Governments and truckers cause more strikes, more walkouts, and more disruptions? You bet.

This thought experiment should highlight just how critical truckers are to a well-functioning modern survival.

Sure, you can say, “if they strike, someone else will just find a truck and drive it…” Oh yeah, we’re already low on quality truckers with skills AND trucks to get the job done.

So, if the industry where to protest and it was a large enough and long enough? Things could go south real FAST!

Supporting Truckers

Now, I support truckers.

They are the folks who kept working throughout the pandemic. They kept hauling and delivering so that most folks could stay at home and hunker down – uncertain how bad things “might” get.

I also have some family members who are in the trucking industry and I think society should be treating them better. With respect. They deserve to be heard.

They are one of our underappreciated heroes of our modern society.

And I can’t stand anyone who is elitist towards hard working folks like truckers, farms, teachers, etc. Without these folks our societies would collapse. We should be treating them more respect and dignity.

That means, when they have a concern, they shouldn’t be demonized, they shouldn’t be ignored. They should be heard and allowed to speak. To voice their concerns – not muzzled.

You Should Start Living A Resilient Life

Now to wrap this up. I like to focus on things YOU can do. The actions you can take, activities you control. That’s why you should stockpile lots of food and learn how to live a more resilient life.

Because MOST folks live a fragile life. And they have no idea just how fragile our supply chain system are. That’s because we’ve become extremely complacent over the years.

For example, during normal times, occasionally, the thing you want may take a bit takes longer the expected to arrive. But for the most part, people ASSUME, grocery store shelves will be well stocked at all times. And physical goods are just a few clicks and 2 day shipping away.

But we all know about how dangerous assumptions can be.  That’s a fragile way to live and you’re putting your life in the hands of others (i.e. supply chains).

Instead, you should work towards improving your own resiliency. To prepare for chaos, to learn survival skills, and increase your own strategic stockpiles of food and supplies.

Action Plan

So today I have to recommendations for you.

Number 1

At the time I published this article, there was a great deal on a 3 pack of quality freeze dried foods from Valley Food Storage (only cost a small shipping fee).

Click here now, to see if this excellent deal is still available.

Now, 3 packs is not nearly enough but it’s Better Than Nothing. But it gives you a way to Test their products before you decide to buy more.

Number 2

The best way I know how to continue become more resilient and less fragile is to join my 30 day prepper challenge.

In this challenge you complete 15 meaningful tasks that will make you more prepared than most your neighbors – all in just 30 day.

And each challenge has both a basic and advanced challenge – so no matter where you are on your preparedness journey, my 30 day challenge is right for you.

Until next time, prepare, adapt, and overcome.

“Just In Case” Jack

P.s. Do you know where the closest nuclear bunker is from your home?

There are a lot of natural nuclear shelters in the US that are absolutely free. And one of them is near your home.

Click here to see the Closest Natural Nuclear Bunker to Your Home?

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