Supply Chain
The government of India, the world’s second-biggest wheat grower, announced Saturday a move to mostly prohibited exports, saying that the nation’s food security is under threat.
Diesel prices hit historic highs this week. Due to increased demand and a drop in production, a diesel shortage may be looming as the largest diesel distribution hub in the U.S. is sitting on supplies at a 30-year low.
The April Ag Economy Barometer shows farmers’ concerns about crop inputs are overshadowing optimism surrounding commodity prices hitting decade-highs as some inputs are still in short supply as planting gets underway.
Rail backlogs in the United States are delaying shipment of grains as well as processed flour and corn syrup, contributing to the national problem of inflation, food and grain companies said at a hearing this week.
Trade disruptions in energy, fertilizer and grains are inevitable. In fact, effects are likely to last for years, possibly even decades.
Increased regulation and the search for better work-life balance are two factors leading to a shortage of truck drivers in the U.S. Walmart is now increasing the starting salary for drivers to try to attract new people.
One of the biggest ag supply chain stories this spring has been pesticides. While my experience is these situations are usually overblown early, the situation could alter the way farmers do business in the years ahead.
Easter egg supplies could be at risk due to the expanding outbreak of Highly Pathogenic Avian Influenza
Surprisingly, Americans spend only about 3% of all consumer expenses on gasoline. Similarly farmers’ fuel increase is considerable, but is being overshadowed by far worse budget problems.
USDA now expects food price inflation in 2022 to be from 4.5% to 5.5%, compared with 2021, based on the all-food Consumer Price Index. No category shows a potential decline.