[COVID-19 Transformation] Labor Gaps Across Food Supply Chains Filled by 'Robots'

Labor Mobility Blocked by COVID-19 Lockdowns
US Meatpacking Plants Hit Hard...Significant Drop in Meat Production
Increased Orders for Farm and Warehouse Transport Robots

The weed removal robot 'Titan' launched by FarmWise in the US in March [Image source=FarmWise official website/https://farmwise.io]

[Asia Economy Reporter Hyunwoo Lee] It is predicted that in the 'post-COVID-19' era, 'robots' will be responsible for operating the global food supply chain. Since the outbreak of the novel coronavirus disease (COVID-19), various types of robots have been developed and are already in operation to fill labor shortages at agricultural production sites, processing plants, and warehouses. The American economic magazine Forbes reported, "Orders for robots are increasing at farms and other places where it is difficult to find labor."

According to foreign media, in March, the U.S. company FarmWise developed a weed removal robot called 'Titan' and is delighted with the flood of orders. In the past, during spring, farms hired a large number of workers who came from Mexico on short-term visas to remove weeds growing around crops such as lettuce. However, after the COVID-19 outbreak, due to border closures and other factors, it became difficult to find labor, leading farms to rush to place orders for robots as replacements.

Robots are filling labor gaps not only on farms but also at every element of the food supply chain. Fetch Robotics developed robots that transport cargo in food warehouses. These robots carry loads of up to 1.5 tons and are equipped with ultraviolet light generators to simultaneously perform sterilization inside the warehouses. Large supermarkets, which are the final point of contact with consumers, are also benefiting greatly from robots. As social distancing made it difficult for most workers to come to work on-site, Brain Corporation's cleaning robots were purchased to perform floor cleaning equivalent to 8,000 hours of labor daily. The global delivery company FedEx is utilizing autonomous delivery robots that climb stairs and deliver packages on their own.

In the United States, it is assessed that the food supply chain problems would have been much more severe without robots. In particular, the meat supply issue starkly reveals the problems in the U.S. food supply chain. Tim Klein, CEO of National Beef, one of the largest meatpacking companies in the U.S., recently stated in an interview with Bloomberg News, "It will be difficult for U.S. meat producers to return to normal production levels by August," adding, "Due to COVID-19-related safety measures, fewer workers can be deployed on production lines, making it hard to return to previous levels."

Meat production in the U.S. has sharply declined this month. This is due to prolonged factory closures, which have disrupted slaughtering and processing operations. According to U.S. Department of Agriculture (USDA) statistics, from the 11th to the 15th of this month, U.S. beef production decreased by 23% compared to the same period last year. Pork (-9.5%) and lamb (-11.1%) production also sharply declined. Concerns are growing that if the supply chain does not recover by next month, meat prices will increase by more than 20% compared to last year, causing a supply crisis.

Food imports are also facing difficulties due to sluggish maritime transport following the COVID-19 outbreak. According to CNBC, consulting firm McKinsey surveyed international container ship transport volumes from early January to April and found that cancellations of voyages due to COVID-19 caused a 30% decrease in transport volume compared to the previous year. Air cargo demand also dropped by 35% during the same period.