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How port shutdowns impact U.S. agriculture

More than 35 East and Gulf Coast ports are at a standstill due to a labor union strike and the executive director of the Soy Transportation Coalition says meat and poultry exports are a concern.

“These occur in refrigerated containers, so there is a period of time they can sit on the docks and remain there, but it’s perishable,” says Mike Steenhoek.

Steenhoek says anything negative that happens to meat exports has a negative impact on soybean farmers, because the livestock industry is a top market for U.S. soy. He also says 5 to 6 percent of U.S. soybean exports are shipped via container through East Coast ports.

“The big question is how long the strike will be. We know soybeans have some shelf life. However, having a delay is costly, inconvenient, it hurts customer relations, but it can be weathered.”

Over the weekend, Ag Secretary Tom Vilsack said USDA is aware of the impact a strike could have on trade, but the export aspect of a strike is relatively small compared to some other industries impacted by the ports and it’s much more significant on imports. Steenhoek says…

“Most of soybean and grain exports occur by bulk. That’s simply when you’re loading these ocean vessels, they have these large cargo holds in the bowels of the ship. Those facilities aren’t impacted by this impasse that’s happening, because even if those facilities are located on the East Coast or Gulf of Mexico, they operate under a different labor arrangement,” he says. “And there are some exporters who use containers that have been able to shift to the West Coast.”

He says fresh fruit and vegetables are impacted by the strike, too and it’s unclear how long the strike will last.

Photo credit: U.S. Grains Council