Impacts of COVID-19-Induced Labor and Income Shocks on the Broiler Supply Chain
By: Luckstead, Jeff ; Devadoss, Stephen
Luckstead, Jeff ; Devadoss, Stephen, Impacts of COVID-19-Induced Labor and Income Shocks on the Broiler Supply Chain, Journal of Agricultural and Resource Economics, Volume 46, Issue 2, May 2021, Pages 189-213
We use a broiler supply-chain model to examine the impacts of COVID-19-induced labor shortages and income reduction throughout the sector. Results show that the labor shock has negative effects on production throughout the supply chain, causing meat shortages and the average retail price to rise by 11:11%. The income shock lowers both quantities and prices in the supply chain. The combined production effects of both shocks are generally more pronounced, as they reinforce each other. However, retail prices move in opposite directions, with labor shock increasing prices and income shock reducing prices, leading to a 5:44% net increase in the average retail price.