Coronavirus disrupting U.S. ag supply chain


Coronavirus disrupting U.S. ag supply chain

The coronavirus outbreak is disrupting the ag supply chain.

Food and Drug Administration commissioner Stephen Hahn says at least six U.S. animal drug companies are reporting disruptions that could lead to domestic shortages.  More than 30 companies nationwide make finished drugs or buy pharmaceutical ingredients in China for use in the United States.

Speaking to Brownfield at Commodity Classic in San Antonio last week, Kent Beadle with CHS Hedging says coronavirus is having a broad impact.

“And right now that impact is negative.”

There are also concerns the outbreak will curb the supply of certain crop protection and fertilizer products.

American Soybean Association president Bill Gordon, who farms in southwest Minnesota, tells Brownfield (coronavirus) has caused a huge disruption in how commerce works in China.

“And it’s back-flowing into our shipping into the United States.”

The U.S. imports some crop protection ingredients from China.  The Chinese are also one of the world’s largest producers of phosphate.

Kent Beadle interview:

Bill Gordon interview:

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