Japan has too much milk but is running low on fries as supply crunch hits

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Japan has too much milk but is running low on fries as supply crunch hits
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McDonald’s says that it will have to ration french fries in Japan due to a shortage.

It said that it imported potatoes from North America, specifically a port in Vancouver that was recently hit by delays due to flooding in the region. Paired with supply disruptions caused by the pandemic, the company faced issues getting shipments to Japan. It said that it had turned to alternative measures, including flying in frozen supplies.

The fast food giant's popular take-out and delivery service has helped it remain resilient in spite of the pandemic's effect on the Japanese economy.“ is primarily due to the supply side of McDonald’s global supply chain,” Hiroshi Ohashi, an economics professor from the University of Tokyo, told NBC News via email. “They procure potatoes from the U.S., where port shipping has been a bottleneck,” he added.“I did not plan to eat at McDonald’s today.

Japan isn’t the first country to face supply issues involving both McDonald’s and milk. The company was forced to for a period in the U.K. earlier this year as Covid combined with Brexit to impact the country’s supply chain.Primarily centered on farms on Hokkaido island in the north of Japan, the milk industry is suffering from what appears to be a combination of unusually high supply and low demand.

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