| Pandemic-driven disruption in supply and demand has the U.S. cheese industry reeling. Prices for a wide range of cheeses hit near-record highs this month, the WSJ’s Jesse Newman and Kirk Maltais report, while the broader market endures disarray as restaurants limit purchases to avoid getting stuck with expensive inventories. Restaurants fear another hit to demand as Covid-19 cases resume rising across the U.S., so they are buying products just one month ahead of time rather than booking purchases up to a year early. Pizza chains are scrambling as the soaring cheese prices drive up their costs. The market chaos shows how the pandemic’s impact on supply chains goes beyond concerns over scarcity and gluts in various commodities. Purchasing remains irregular and companies anxious to conserve cash aren’t taking risks on inventories. For suppliers, that makes projecting demand about as easy looking through a thick wheel of Wisconsin cheddar. |
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Operations and Supply Chain Management 