More supply chain disruptions to come from Chinese lockdowns

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More supply chain disruptions to come from Chinese lockdowns

An ag trade expert says supply chain disruptions are far from over as COVID-19 lockdowns continue in China.

Gregg Doud, with Aimpoint Research tells Brownfield while backlogs at US ports are clearing up, “We are going to have a conversation here very soon about nothing coming from China. It is déjà vu all over again for us on some of these supply chain issues I’m afraid.”

Doud says there is nothing coming out of China on the supply chain right now including phosphate fertilizer.

“About 1/3 of all the phosphate for fertilizer comes from that part of the world and a lot of the manufacturing to make that fertilizer is done in the Shanghai area which is locked down. What does that mean for the supply of that, not just for China but for the entire world?”

Doud says restrictions by the Chinese government are even preventing some farmers from planting which puts greater pressure on the global supply chain as farmers in other countries face planting delays caused by weather and war.

“If you are comfortable right now, I’m not sure that you are breathing. There are a lot of different things that make people nervous in this kind of environment.”

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