Here's why you can't find frozen fries, while U.S.
farmers are sitting on tons of potatoes
Send a link to a friend
[April 24, 2020] By
Lisa Baertlein
(Reuters) - Shopper Lexie Mayewski is
having a hard time finding frozen french fries in Washington, D.C.-area
supermarkets in the wake of coronavirus-fueled stockpiling.
On the other side of the country, Washington state farmer Mike Pink is
weighing whether to plow under 30 tons of potatoes worth millions of
dollars that would have been turned into french fries for fast-food
chains like McDonald's Corp <MCD.N>, Wendy's Co <WEN.O> and Chick-fil-A.
Their incongruent experiences underscore how America's highly
specialized and inflexible retail and foodservice supply chains are
contributing to food shortages and waste in the wake of demand
disruptions from the COVID-19 pandemic.
Frozen french fry sales at grocery stores spiked 78.6% for the four-week
period ended April 4, according to Nielsen data, resulting in shortages
at many U.S. supermarkets.
![](http://archives.lincolndailynews.com/2020/Apr/24/images/ads/current/heartland_discover_lda_April_2020.png)
Mayewski, 25, a construction manager, has not seen frozen fries at the
Giant Food <AD.AS> or Safeway <ABS.N> supermarkets near her Maryland
home.
"There's not a single french fry to be found," said Mayewski, whose
supply of frozen shoestring and waffle fries was running low.
Frozen fries are an ideal pandemic staple - offering comfort,
convenience and long-shelf life for U.S. families accustomed to
fast-food meals and school cafeteria lunches.
The main hurdle is the extra-large size of foodservice packages that are
meant for kitchens that turn out dozens if not hundreds of meals each
day.
"Think Costco, but bigger," said International Foodservice Distributors
Association (IFDA) CEO Mark Allen, referring to the oversized products
sold at warehouse retailer Costco Wholesale Corp <COST.O>.
Nondescript foodservice packaging also does not have the ingredient and
nutrition labels required by the U.S. Food and Drug Administration (FDA)
or the bar codes needed in grocery checkout lanes.
While the FDA has said it would temporarily relax labeling rules and
protect consumers with food allergies, foodservice suppliers still face
significant hurdles switching to retail-friendly formats. New equipment
for packing and labeling product is expensive, and plastic containers
are in short supply.
FREEZERS FULL OF FRIES
Kraft Heinz Co's <KHC.O> Ore-Ida, the main producer of frozen fries for
supermarkets, is rushing to bolster supplies.
"Our Ore-Ida factory is running at full capacity to keep up with
demand," Kraft spokesman Michael Mullen said.
[to top of second column] |
![](../images/042420pics/busine43.jpg)
A lone box of frozen french fries is all that remains in a nearly
empty section of a freezer case at a Giant supermarket in Falls
Church, Virginia, U.S., April 23, 2020. REUTERS/Kevin Lamarque
![](http://archives.lincolndailynews.com/2020/Apr/24/images/ads/current/rohlfs_lda_072017.png)
At the same time, major fast-food french fry suppliers McCain Foods, J.R.
Simplot Co and Lamb Weston Holdings Inc <LW.N> are canceling potato orders.
Fast-food suppliers' freezers are full of frozen fries, hash browns and potato
skins and their storage sheds are packed with potatoes, farmers and experts told
Reuters.
Their demand is down because four in 10 U.S. restaurants are closed, as are
schools, hotels and workplaces. Fast-food chains are doing drive-through only,
and with no set date for lifting stay-at-home orders, the outlook for the
foodservice industry is dim.
Lamb Weston, McCain and Simplot - which supply the lion's share of McDonald's
french fries - did not respond to requests for comment. Lamb Weston also does
retail sales.
Pink, who farms near Pasco, Washington, said fast-food french fry suppliers
canceled orders for 1,000 acres of potatoes. He has already invested $2.5
million on those crops. Each acre produces roughly 30 tons of potatoes and
getting them ready for sale would cost Pink another $1.5 million. He may have to
plow the potatoes under - adding to food destruction in the U.S. produce and
dairy sectors.
"Do I continue to invest or do I stop and try to minimize my loss?" asked Pink.
"It's just devastating."
The National Potato Council said there are $750 million to$1.3 billion in
potatoes and potato products clogged in the pipeline.
"It's a huge challenge. Nobody was prepared. Nobody could imagine that this
could happen," Rabobank food analyst JP Frossard said.
Grocery consultants and retailers told Reuters that foodservice products like
toilet paper, cleaning supplies and meat have found their way into the retail
channel, while many others have not.
![](http://archives.lincolndailynews.com/2020/Apr/24/images/ads/current/newhollandbank_sda_SFARM_2020.png)
Compounding problems, most foodservice operators do not have connections at
supermarkets - where adding a new product can take several months.
"It would be a Herculean task," Allen said of rerouting supplies. And with all
the uncertainty around demand, he added, "the investment would be tough to
justify."
(Reporting by Lisa Baertlein in Los Angeles, Chris Walljasper in Chicago and
Hilary Russ in New York; Editing by Lisa Shumaker)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |