IDFA comments on ‘dislocation’ between US foodservice & retail during coronavirus
Graph courtesy of the IDFA
The International Dairy Foods Association (IDFA) has noted that shutdowns, lockdowns and quarantines as a result of Covid-19 are altering the way people eat in the US.
According to the IDFA, in the fourth quarter of 2019, Americans spent about as much money at restaurants as they did in grocery stores – $65.3 billion monthly eating out, $65.4 billion shopping from the aisles.
Currently, many restaurants in the US are having to close, though many are attempting to gain additional business with takeout and delivery services. These services will help, says the IDFA, but the restaurant industry is likely losing billions in sales every week.
Meanwhile, US grocery store supply chains are striving to keep up with demand.
While the IDFA has said that the coronavirus crisis has created dislocation between foodservice and retail, it says that the dairy industry may fare well enough; retail will pick up a good portion of lost demand from the foodservice sector. Fluid milk sales are surging as people seek to feed families at home, for instance. The IDFA has said that aggregate dairy demand – especially for cheese – will likely not collapse during this period.