Posted on 05/01/2021 12:46:10 PM PDT by EBH
“No one has everything they need right now,” says Tom Lyons, vice president of supply chain at Nufarm. “This past year underscores the importance of flexibility and contingency planning. We’ve been on plan A, plan B, and plan C.”
Suppliers and retailers have shared that multiple crop protection products are in short supplies this year.
“The reality is this is a perfect storm,” Lyons says. “The planting conditions are favorable. And product inventories are relatively low. But there are delivery challenges on top of that—and it’s extremely tight.”
Gregg Doud, Aimpoint Research Vice President of Global Situational Awareness & Chief Economist agrees how the factors have lined up as a ‘perfect storm.’
“Soybean acres are up. Commodity prices are up and were already expected to be on a roller coaster through the summer. Now we add in a short supply and rising prices of inputs. Hang on, it’s going to be a wild ride as our supply chain adjusts,” Doud said in an Aimpoint release.
In August 2020, Aimpoint Research saw signals of a tightening crop protection supply chain and advised its members to give extra attention to the space.
Lyons shares that now the growing season has started the “last mile” of logistics is particularly challenging to get product that arrived in the U.S. positioned exactly where it needs to be.
“With the market being as tight as it is, we want to give customers the best information on timeliness,” Lyons says. “It’s a daily review—making sure we’re getting what we anticipated yesterday. We have materials coming in; we have the capability to formulate and execute. We see being able to drive hard for our customers.”
Although large volume AIs such as glyphosate, 2,4-D, and glufosinate are more limited with transport options, Lyons shares Nufarm has used air freight to circumvent the overseas shipping backlogs when possible and necessary for the small volume products.
Lyons notes in the past nine months the company shifted some of its global production as it saw limits in product manufacturing and shipment capabilities. For example, some supplies were shifted from China to Europe and Australia. And Lyons says the company expects to continue to need to be proactive to meet demands for this year and next.
“We have invested in our supply chain in the last three years to offer customers more capacity---more formulation capability. So our priority is to make sure we’ve servicing customer needs for this spring. But we’re already looking ahead to make sure we’re well prepared for fall and winter next year,” Lyons says.
What’s running short:
ALL being orchestrated by the feds., etc. to dangerously and/or Rapid price inflationarily reduce the food supply, etc.
did you mean the Fed or the feds ?
The side effects will be higher food prices for a year,
alternate chemicals besides roundup being used.
this will effect smaller farms more than large corporate ones, there will be bankruptcys allowing people to purchase farmland at reduced prices.
President Donald Trump on Aug. 23 signed into law the Family Farmer Relief Act of 2019. This law increases the amount of debt a farmer may have, yet still remain a “family farmer” eligible for Chapter 12 bankruptcy protection. The new law raises this threshold from $4,411,400 (indexed for inflation) to $10 million.
The industry will be watching to see what impact this change might have. Recent statistics from the U.S. bankruptcy courts show Chapter 12 bankruptcy filings increased from 475 between July 1, 2017, and June 30, 2018, to 535 between July 1, 2018, and June 30, 2019. In Iowa, this number increased from 18 to 24 during the same time frame. Although increasing, these numbers remain low. In 1987, nearly 5,000 farmers filed for Chapter 12 protection.
Feds. as in the federal government, etc. Soros and corporate farms are trying to buy up even more family farmers’ land for Soros and corporate farms and the feds., etc. to completely to almost completely control the food supply (or lack thereof when Soros/corporate farms/the feds./etc. purposefully start not to plant/not plant enough, destroy crops and/or livestock, etc. to purposely starve the people, make what food is actually grown and raised to expensive for people to buy, etc.). One of the communist “goals” and sayings is: who controls the food (and/or lack of food [and water/utilities]) controls the people.
A lot of things are coming up short. I cant get the template material I use in my business, nor the glue. Factories say they are having trouble getting ingredients and also workers (who are sitting on unemployment rather than work). My mechanic says parts are getting hard to locate. If he could’nt have located the front rotors used in my truck my business would be dead. That reality may be looming... Friday I read a report that John Deeres the farmers use are not to be found, the consumer stuff you can still get. The trucking industry, already straitened wrt drivers is in even worse shape in that regard now. All of this Ive run into without even looking. It’ll be interesting to see how American industry responds to this stupid covid shutdown imploding the supply chains...if thats whats happening...
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