World Grain - July 2021 - 28
GRAIN
SECTOR
REBOUNDING
FROM
PANDEMIC
IGC Conference speakers say the industry
functioned well through difficult circumstances
by Chris Lyddon
W
ith the COVID-19 pandemic finally starting
to ebb, speakers at this year's International
Grains Council (IGC) Conference, held
virtually June 8-9 as a precautionary measure, said
the global grains and oilseeds supply chain has handled
COVID-19 well, despite wrestling with labor
supply problems, closed borders, high shipping costs
and wild swings in demand, notably away from biodiesel
as vehicle use shrank dramatically with people
around the world staying home.
The feed sector had problems keeping its workforce
safe and got a reminder that buffer stocks
are necessary to cover shocks to the system, while
oilseeds producers and traders are looking forward
to renewed biofuel demand. For grains, favorable
weather has brightened the production outlook.
In a group discussion on feed demand, Justin
Sherrard, global strategist, animal protein at
Rabobank, highlighted the issue of labor availability
in the wake of the pandemic.
" The animal protein sector, particularly 12 months
ago, had enormous problems with maintaining work28
forces
in a safe environment within their plants, "
he said. " In some cases, with beef for example, we
are still working through the back end of the supply
backlog that was established by the slowdown in
plant operations.
" There have also been some disruptions associated
with COVID-19 outbreaks in plants that have influenced
or impacted or restricted trade. Certain plants
have been suspended from exporting to certain countries
because of COVID outbreaks, for example.
" Most of that is behind us but the broader issue of
labor availability remains. It remains quite challenging
in many parts of the world to find the workers, to
get the workers into the plants, particularly some of
the more labor-intensive deboning activities. "
Sherrard also pointed to a growing challenge regarding
freight costs.
" The cost of shipping from Europe to Asia, North
America to Asia, South America to Asia - all of
these costs have gone up during the last nine months
or so, " he said. " While we may be saying that those
costs have peaked, they are still very high costs
July 2021 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - July 2021
Table of Contents for the Digital Edition of World Grain - July 2021
World Grain - July 2021 - Intro
World Grain - July 2021 - 1
World Grain - July 2021 - 2
World Grain - July 2021 - 3
World Grain - July 2021 - 4
World Grain - July 2021 - 5
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World Grain - July 2021 - 7
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