This will happen, the report outlines, in spite of as a weaker corn, sorghum, and wheat harvest. Shortages of cereal were reported throughout 2021, including the disappearance of Grape Nuts in January-which lead to some customers paying $110 for a box online.
Supply chain disruptions play a big role in product shortages. According to The Associated Press, grocery store scarcity is being exacerbated by Omicron-related labor absences, a deficit in truck drivers, and weather-related delays such as extreme storms and wildfires.
In the February report on Cereal Supply and Demand, the Food and Agriculture Organization of the United Nations (FAO) noted that the production of cereal, as well as the item’s utilization and trade, would continue to increase through 2022.
Kellogg Company, the major cereal manufacturer, is trying to stay one step ahead of a potential shortage as we speak but it’s not a supply chain issue that’s threatening the company’s cereal production.