The term “supply chain” was once confined to logistics professionals, economists, and policymakers. However, the COVID-19 pandemic exposed vulnerabilities in global supply chains, and recent developments—such as new tariffs and the push for nearshoring—have added layers of complexity. For kosher-certified companies, these disruptions can significantly impact production, particularly when sourcing compliant ingredients. To help OU certified companies, OU Kosher’s database of millions of kosher products and ingredients, coupled with its global network of experts, remains a critical resource for navigating these challenges.
The Pandemic’s Lasting Impact on Supply Chains
During the height of the COVID-19 pandemic, supply chains faced unprecedented disruptions. Lockdowns, labor shortages, and transportation restrictions led to delays and shortages of critical ingredients. For kosher-certified manufacturers, these issues were compounded by the need to ensure that alternative suppliers and ingredients met stringent kosher requirements. As Rabbi Rueven Nathanson, a West Coast rabbinic field representative (RFR), noted during the pandemic, environmental factors like heat and fires reduced regional grape juice yields by 25%, forcing companies to seek alternatives quickly. Similarly, Rabbi Kalman Scheiner, a rabbinic coordinator (RC), recalled a kosher-for-Passover product manufacturer facing production delays due to a missing shipment, highlighting the cascading effects of supply chain bottlenecks.
In response, OU Kosher leveraged its extensive database and network of 850 field representatives and 70 rabbinic coordinators across 105 countries, supervising 3,000 facilities and over 1.2 million products. This infrastructure allowed OU Kosher to help certified companies identify alternative suppliers and ingredients swiftly. For example, when a company needed a kosher-compliant butter substitute but found the distributor’s offering unsuitable due to non-compliant production facilities, OU Kosher’s team used its database to source a viable alternative, preventing costly production delays.
New Challenges: Tariffs and Nearshoring Pressures
While the acute disruptions of the pandemic have subsided, supply chains remain volatile due to new economic and geopolitical pressures. In 2025, U.S. trade policy changes, including supplemental tariffs of 25% on imports from Mexico and Canada (with exemptions for USMCA-compliant goods), 20% on Chinese goods, and 25% on global aluminum and steel imports, have introduced uncertainty for manufacturers. These tariffs, part of the “America First Trade Policy,” aim to boost domestic manufacturing and address trade imbalances but may increase costs for imported ingredients and raw materials.
Simultaneously, the push for nearshoring—relocating production closer to end markets, such as Mexico or Canada—has gained momentum. A 2023 McKinsey survey found that 64% of companies are regionalizing their supply chains, with two-thirds sourcing more inputs from suppliers closer to production sites. The United States-Mexico-Canada Agreement (USMCA) has facilitated this shift, encouraging companies to source from North American partners to avoid tariffs and reduce lead times. However, nearshoring is not without challenges. Higher labor costs and lower productivity in some nearshore locations, as seen in a case where a company relocating from China to Mexico achieved only break-even results, underscore the need for strategic planning.
For kosher-certified companies, these trends complicate ingredient sourcing. Relocating supply chains may require vetting new suppliers for kosher compliance, while tariffs could increase costs for imported kosher ingredients. Additionally, retaliatory tariffs from other countries could reduce demand for U.S.-made kosher products abroad, affecting export-driven manufacturers.
OU Kosher’s Role in Building Resilience
OU Kosher’s comprehensive database and global expertise position it uniquely to support certified companies in this evolving landscape. The database, which includes millions of products, ingredients, co-packers, and contract services, enables rapid identification of kosher-compliant alternatives. Companies facing supply chain disruptions—whether due to tariffs, nearshoring transitions, or unexpected shortages—can rely on OU Kosher to connect them with approved suppliers listed in their Schedule A, a document detailing approved ingredient sources for kosher products.
To prepare for disruptions, OU Kosher encourages companies to maintain a robust list of backup suppliers. If a company lacks alternatives, OU Kosher’s rabbinic coordinators can assist by leveraging the database to identify suitable options. For instance, if a tariff increases the cost of an imported kosher ingredient, OU Kosher can help source a USMCA-compliant alternative from Mexico or Canada, aligning with nearshoring strategies and tariff exemptions. Similarly, when environmental or geopolitical disruptions affect supply, such as the 25% reduction in grape juice yields noted earlier, OU Kosher’s team can quickly provide solutions to keep production on track.
OU Kosher’s customer service extends beyond kosher supervision. “Our job is to support our client companies in areas that reach beyond kosher compliance,” said Rabbi Moshe Elefant, OU Kosher’s COO. “We take pride in helping our certified companies navigate complex supply chain challenges, ensuring they can deliver high-quality kosher products to consumers.”
Strategies for a Resilient Kosher Supply Chain
To thrive in this era of tariffs and nearshoring, kosher-certified companies should adopt proactive strategies:
- Diversify Suppliers: Maintain a broad list of kosher-compliant suppliers in your Schedule A to mitigate risks from tariffs or regional disruptions. OU Kosher’s database can help identify new suppliers in nearshore markets like Mexico or Canada.
- Leverage Technology: Invest in digital tools for supply chain visibility and demand forecasting. OU Kosher’s database integrates with these efforts by providing real-time access to compliant ingredient options.
- Plan for Tariff Impacts: Assess the cost implications of tariffs on imported ingredients and explore USMCA-compliant sources to reduce expenses. OU Kosher can assist in vetting new suppliers for compliance.
- Build Strong Relationships: Foster collaborative partnerships with suppliers to ensure flexibility during disruptions. OU Kosher’s network facilitates connections with reliable, kosher-certified partners.
- Monitor Geopolitical Trends: Stay informed about trade policies and retaliatory tariffs that could affect exports. OU Kosher’s global presence provides insights into market dynamics across 105 countries.
Looking Ahead
The supply chain landscape continues to evolve, shaped by the lingering effects of the pandemic, new tariffs, and the shift toward nearshoring. For kosher-certified companies, these changes underscore the importance of resilience and adaptability. OU Kosher remains a steadfast partner, offering unparalleled expertise and a database of millions of kosher products to help manufacturers navigate disruptions. By combining strategic planning with OU Kosher’s resources, certified companies can overcome supply chain challenges and continue delivering high-quality kosher products to consumers worldwide.
For assistance with supply chain challenges or to explore OU Kosher’s database, contact your rabbinic coordinator or visit oukosher.org.