The state of global supply chains post-COVID is no secret: things have not been smooth, especially in North America.
Demand for goods in the U.S. initially cratered at the beginning of the pandemic: workers lost their jobs, manufacturing capacity decreased, and suddenly shipments of exports into the U.S. were canceled.
But in the summer of 2020, demand for imports exploded. The U.S.—a huge driver of international trade—was ready to import again. But by then, the logistics around international trade were starting to fail. For over a year now, there has been a massive shortage of shipping containers, congestion has stopped up major international ports and rail terminals, and shipping rates have seen huge increases.
Delays abound, and there doesn’t seem to be an end in sight for the U.S.-heavy supply chain issues.
But a little further south in Latin America… could global supply chain delays actually work in the region’s favor?
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Argentina, one of the world’s largest beef exporters, banned beef exports for 30 days on May 31, 2021. A similar 180-day ban occurred in 2006 and came with disastrous consequences for the cattle industry. With modern challenges like the COVID-19 pandemic already contributing to supply chain disruption, there are concerns that this ban may result in a repeat of history…
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2020 was certainly one for the history books. Extreme uncertainty collided with a generally chaotic year and in many moments, the dairy market’s movements seemed to defy fundamentals. But while 2020 may have left most market analysts, myself included, humbled, the time has come to swallow what’s left of our tattered pride and shift our focus to 2021…
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Oscar Wilde once quipped that, “Conversation about weather is the last refuge of the unimaginative”. I imagine then, that Mr. Wilde would be sorely disappointed to learn that much of the discussion swirling around Latin American agriculture this year is focused on the La Niña phenomenon and its potential effects in the region…
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The Latin American probiotics market is expected to grow by 6.74% annually over the next 5 years, reaching a value of $7.73 billion USD by 2025. The COVID-19 pandemic has only intensified demand and the market for dietary supplements will likely soar in the wake of the crisis. As consumers focus on their health, sales of immunity-oriented probiotic supplements will rise dramatically…
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As nascent bakers around the globe used their time in lockdown to hone their focaccia and sourdough skills, unassuming flour rose to claim a starring role in many kitchens. Of course, flour has always been a pantry staple, but retail demand for the product exploded in many parts of the world as folks stuck at home reconnected with their ovens. This phenomenon was particularly extreme in the United States, where flour manufacturers saw retail demand for their products grow by as much as 2000% while the country was in confinement.
Flour is most commonly made from milled wheat. Although alternative grains can also be used, today we are going to focus on wheat as a global agricultural commodity and its trade dynamics across the Americas. We actually first focused on wheat on this blog back in 2016, and if you’re interested in some additional background, that post would be a good place to start. But with all the attention foisted on wheat over the last few months, it is an opportune time for an updated look at this critical grain and its role in regional agricultural trade…
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Against the backdrop of an economy reeling from the pandemic, and with large swaths of the population still confined to their homes, the Argentine government moved this week to expropriate Vicentin, a large agricultural company. In a shock to most, Argentine president, Alberto Fernández, decreed on June 8th that the government would ‘intervene’ in the debt-laden private company and submit a plan to congress for expropriation.
Unsurprisingly, the announcement was met with outrage from the agricultural sector as well as the business community at large. But the Argentine people, the pueblo, also voiced dissent – with hundreds defying stay-at-home guidance to attend protests against the intervention in Santa Fe, the province where the company is headquartered.
For the moment, this outcry has been enough to slow the initiative’s advancement. The government has spent the last few days meeting with company executives and strategizing its next move. But despite the pause, the situation has raised serious doubts about institutional credibility in Argentina and begs the question of who is truly pulling the strings…
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It seems that when I flip open my computer each morning during quarantine, I am greeted by yet another headline declaring that the coronavirus has ripped the mask off of a global food system in peril. Article after article warns that the pandemic has revealed fundamental and structural flaws of the system that were ever lurking, just below the surface.
I disagree.
It is nothing short of heartbreaking to hear stories of farmers forced to dispose of their own production or images of our neighbors waiting on assistance from food banks. But characterizing these wrenching losses as a wholistic failure of our modern food system grossly misrepresents the many positive ways that it has continued to function – even in the face of unprecedented challenges.
Facing a disaster of historic proportions, I believe the global food system has, in fact, demonstrated incredible resilience. Yes, there have been hiccups and missteps. And yes, there are prevailing and well documented ethical and environmental dilemmas that the food system needs to confront. But as one of the only industries continuing to fully operate during the pandemic, the global food industry has demonstrated its ability to adapt, adjust, and overcome challenges – keeping us fed while negotiating a jarring new reality…
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As people around the world find themselves in different stages of lockdown or liberation, our focus is shifting from the health implications of the coronavirus to the indelible impact the pandemic has had, and will have, on our economies. Forecasting the economic ramifications of COVID-19 is an enormously complicated task. Indeed, even top analysts from the most prestigious institutions are revising their forecasts on a weekly basis…
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