The 3rd Agricultural Supply Chain 2021 has just ended its three-day run covering a wide range of topics surrounding the US grain and corn industry, and supplemented with discussions from agricultural and trade experts.
Day 2 of the conference focused primarily on the US and global agribusiness supply chain. Unsurprisingly, one subject matter of interest is how the Covid-19 pandemic has affected the industry. Production-wise, the pandemic has resulted in a significant loss of more than USD 4.7 billion between January and June 2020 for US soybean farmers and crushers, although projections have suggested much more optimistic conditions for crushers in 2021, with positive projections including strong demand for soybean meal productions and protein-based products.
Source: National Oilseed Processors Association (2021)
From a logistics and transportation viewpoint, one expert discussed the undergoing changes in the transportation network of the food supply chain in general as the world adapts to the “new normal” resulting from the Covid-19 pandemic.
Source: IHS Markit (2021)
Again, discussions on the impact of the coronavirus outbreak on the agribusiness supply chain is timely. News is surfacing about shipping carriers rejecting an estimated 177,938 containers of US agricultural products during October and November 2020, preferring allegedly more profitable Chinese exports instead. This occurred during a peak season for agricultural products, following the harvest of crops, and according to port trade data, has resulted in a loss of USD632 million from the Port of New York and New Jersey alone. US exporters have been petitioning the Federal Maritime Commission, warning that the delays from these refusals are undermining industry reputation and threatening profits.