Coronavirus has no effect on the availability of ingredients
According to companies contacted by Milling & Baking News, the global coronavirus outbreak has caused ingredient suppliers to food and beverage industries to reduce travel, but the impact on their ingredient supplies has not been significant thus far.
“We are keeping a close eye on the circumstances surrounding the coronavirus,” stated Jackie Anderson, who works in media relations for Chicago’s Archer Daniels Midland Co. “At this time, neither our company as a whole nor any of our many businesses are seeing any significant effects. We are actively developing backup plans with a few chosen clients in case our supply chain is disrupted. In addition, we are keeping up with the revision of travel restrictions as necessary to support our coworkers’ safety.
Chicago-based PureCircle is a US-based company that makes stevia leaf components for food and drink products.
Vice President of Global Marketing Alina Slotnik stated, “We have not experienced any interruption in our ability to supply our customers with our stevia ingredients due to the global spread of the coronavirus.” We have been able to prevent any such disruptions because of the diverse geographic locations of our component production and stevia leaf supply. We cultivate and gather our exclusive stevia in several parts of the world, such as China, South America, Africa, and the USA. Most of the materials we use to make our stevia are made and refined in a secure facility in Malaysia. All of them have lessened the possibility of a possible interruption brought on by the COVID-19 (coronavirus) epidemic.
James P. Zallie, president and chief executive officer of Ingredion, Inc., Westchester, Ill., disclosed to Food Business News, a sister newspaper of Milling & Baking News, during the Consumer Analyst Group of New York conference in Boca Raton, Fla., in late February that the company had two manufacturing units in China. The distance between the two plants and Wuhan, the starting point of the epidemic, is roughly 850 kilometers (528 miles). While one of the plants has been operating continuously, the other has seen disruptions because of staffing shortages.
He stated, “COVID-19 had no effect on our business in the fourth quarter.” On the other hand, the first quarter is showing indications because of the need for obligatory quarantines and the labor pool to run our factories.
“We have to be on the lookout for ingredients, whether they be materials or chemicals, and while it hasn’t affected us yet, it is a concern for us. We should be on the lookout for the ripple impacts on the supply chain that so many businesses are talking about. We have a lot of inventory, but our future visibility isn’t fantastic.
Tate & Lyle, PLC, a London-based corporation, stated that while it has not encountered any major production or shipment challenges connected to the coronavirus, it is actively watching the situation.
The business stated, “Safety is our top priority and we have taken precautions to support our colleagues and operations across our network in response to the coronavirus outbreak.”
The Salina, Kansas-based REPCO uses enzyme technology to create dough conditioners and improvers. In addition, the company provides vitamins and minerals to enrich wheat flour, milled rice, corn meal, grits, baked goods, and morning cereal.
The CEO and president of the company, Monte W. White, stated, “At this time, there are no delays with our ingredient supply chain.” It is true that items have been transported throughout China, loaded into ships, and set sail. We will keep a close eye on the issue and have been actively monitoring it with all of our global suppliers.
In addition, we keep completed goods and raw materials in our warehouse to help extend our supply in case there are delays brought on by bad weather, typical port traffic, or the current coronavirus. If there are any major changes to our supply chain, we will keep our customers informed as we have been doing.
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Minneapolis-based Cargill has suspended all non-essential, foreign business travel for two weeks, including travel by rail, airplane, or other means of transportation between nations in a region, in response to advice from the World Health Organization and other organizations.
The business stated, “We are committed to taking every precaution to help keep our employees healthy and safe— and to do our part in limiting the spread of the virus— as coronavirus continues to impact people across the globe.”
A corporate representative stated that DuPont, Wilmington, Del., has provided travel advice to staff members along with other safety and health-related measures.
In addition, she stated, “we have updated policies and procedures regarding visitors to all plants and sites.” “As the circumstance changes, so do our plans and actions.”
The food and beverage business may not be the only one affected by the coronavirus. Smaller, higher-margin products like laptops, video game consoles, and phones will be impacted by the cancelation of commercial flights, according to Barbara Hoopes, PhD, an associate professor of business information technology at Virginia Tech University in Blacksburg, Virginia.