Ag export buy ups likely to continue in 2022
A global trade analyst says ag export buyers have increased preventative planning and order amounts to overcome ongoing port constraints.
William Loux with the U.S. Dairy Export Council tells Brownfield just in time inventories are no longer an option as carriers from the U.S. have continued to leave with empty loads.
“Additionally, you’ve seen these carrier companies also be somewhat unreliable,” he says.
Loux says China in 2021 is the biggest example of this, buying significant amounts of dairy products and other ag exports for their supply chain. He expects other regions to build inventories this year and create buffer inventories.
“What this really means is that you’re going to buy additional product to make sure you have the supplies that you need on hand when you need it even if there are further supply chain disruptions,” he explains.
He says a lot of the port issues could be solved through policy, pointing to the Ocean Shipping Reform Act, or the administration providing short-term relief efforts to encourage throughput at ports.