COVID-19 Another Bullwhip… Canned Corn

The reasons behind some food shortages during the pandemic can be found in a can of corn. Corn is a staple in the U.S. with a seemingly limitless supply, but the WSJ’s Annie Gasparro and Stephanie Stamm report that canned corn is among many consumer items that have thinned out drastically as stockpiling and supply chain disruptions have hit the market. Sweet corn has only a single planting season and those had already been set by the time the production shortfall became clear. Transportation problems then hit the market as harvesting began. Fleets that had shrunk last year couldn’t handle the early surge in new demand and trucking companies began rejecting loads on existing contracts to take higher rates in the spot market, driving up shipping costs. Canned-corn brands plan to increase production, but retailers expect high demand this winter will cut deeper into their depleted inventories.