Kropfs, Hanke’s see little supply chain disruption

SHAWANO — Beef, chicken and pork, including bacon and ham, should remain in good supply on grocery store and butcher shop shelves but don’t be surprised if they cost more.

That’s how several businesses see the situation as meat shortages have been reported due to the COVID-related closing of more than 44 meat plants and slaughterhouses closing around the country including JBS Beef in Green Bay.

“The biggest question mark will be the price, not the supply,” said Keith Diers, meat manager at Hanke’s Sentry Foods in Wittenberg.

“For the most part, though, I’m getting what I ordered,” Diers said.

Diers noted one of his vendors was out of all pork cuts except for one this week.

Kelly Sufka, assistant manager at Charlie’s Market in Shawano, agreed with the uncertainty of meat prices staying at current levels. She said the store is “sitting pretty well right now” in terms of supply. Charlie’s was able to get some additional supplies because stores in the Milwaukee area had canceled their orders, she added.

From his perspective as co-owner of Kropf’s Meat Processing, a retail and custom processing outlet in Bowler, Mark Kropf has seen little disruption in the supply chain to date.

He said some of their distributors have been limiting quantities due to overall tightening of the meat supply.

One sign of the supply chain disruption was a phone call from a Minnesota hog producer who could not find a place for processing the latest market-ready animals, Kropf said. He said his shop can process some of the surplus but he’s had to coordinate with other small processors in Wisconsin to absorb the rest.

Sufka said customers may see some different brands and frozen products for chicken as the store’s regular vendor has been cutting back on its deliveries.

Sandy Hanke, Wittenberg store owner, said her store’s response includes limits on chicken and ground beef purchases.

“We want to make sure everyone gets some,” Hanke said. “People have been pretty understanding” about the limits.

Kropf said that the demand for ground beef, roasts and cheaper cuts has driven down supplies while ribeye steaks and other premium cuts remain in good supply.

A local buyer has increased its ground beef purchases from Kropf’s as its regular supply channels have dwindled, the Bowler butcher added.

Sometimes being small can be an advantage. Megan Dorsch, marketing manager at Nueske’s Applewood Smoked Meats, said the Wittenberg-based processor has not been affected by shortages because it doesn’t purchase from large suppliers. Instead, she said, the company relies on a group of smaller producers with business relationships in place for as long as 30 years.

Being a smaller processor means the company can be more resilient in adapting its production practices and working with fewer employees, Dorsch said.

Currently, Nueske’s is producing less than normal, largely due to the decline in food service sales, Dorsch added.

The shrinking of processing capacity has put the meat industry in an unusual position. Live animal sale prices have dropped significantly in the past two months while retail prices for meat have been stable or risen, according to the American Restaurant Association.

“Hopefully, this loosens up soon and farmers can start getting back on their feet,” Kropf said.

News stories on meat plant and slaughterhouse closings due to the pandemic “have put the fear in local consumers,” Kropf said.

The family business had its best month of retail sales since it started in Tigerton in 1895, Kropf added, as people are getting back to buying more from local sources.

Nueske’s retail business, including mail order, is booming, Dorsch said.

Customers have appreciated the recent addition of curbside delivery and Dorsch predicted lines of vehicles in the Nueske’s retail store parking lot this weekend as fishermen come to the area for opening day.

Consumers like to know the source of their meat and are going back to an old habit of filling the family freezer. There is also more consistency in the freshness and cuts when buying in bulk from a local processor, Kropf added.

People are buying big, not just $50 at a time but hundreds of dollars and coming to the store as early as 7 a.m. on a recent morning, the butcher added.

The phone has been ringing off the hook with inquiries about buying halves of pigs, Kropf said.

The business, now run by Mark and his sister Cindy, does its own curing and smoking and has also seen its custom processing business expand.

The Wisconsin state health department and its personnel have been very helpful during the pandemic, Kropf said. The Bowler company can now slaughter more than one day each week under a relaxation of rules “as the state tries to help get food to people,” Kropf said.

The state has also provided guidance for food system workers, Kropf said and has supplemented his shop’s efforts to upgrade sanitation and keep workers at a safe distance.

Diers said the store’s cleaning practices have always been at a high level but that he’s been asked if COVID-19 can be contracted from eating pork, chicken or beef. Diers said the disease can’t be contracted from eating but from a virus on the packaging.