Land O’Lakes CEO: Coronavirus causing ‘tremendous volatility’ in commodities
Land O’Lakes CEO Beth Ford discusses how coronavirus is shaping agriculture.
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Continue Reading Below
Dairy giant Land O’Lakes has been monitoring the relationship between agriculture and retail during the coronavirus outbreak, recognizing that demand and the way consumers shop is beginning to shift.
“We certainly are seeing the consumers change their behavior," Land O’Lakes CEO Beth Ford told FOX Business' Maria Bartiromo on Tuesday. "They’re buying for a couple weeks at a time, a lot of folks are buying online.”
Meanwhile, Ford said there have been several factors that have tanked the price of commodities in the industry, including depreciation of the Brazilian Real against the strong U.S. dollar and lack of product demand in food service. This, however, will not translate back to the consumer, according to Ford, since retailers set prices.
“The CRB index, which is a representative index of commodities since the coronavirus spread, has dropped to a level we haven't seen since 1972,” Ford told FOX Business' Maria Bartiromo. “And this is across all of the commodity areas — we are seeing tremendous volatility.”
CORONAVIRUS SHIFTS WHITE CASTLE'S FOCUS TO RETAIL, DRIVE-THRU
Still, Ford said Land O’Lakes' supply chain remains strong.