Supply Chain Problems Will Require Complex Series of Solutions

Brian GermanAgri-Business, Trade

Ongoing bottlenecks continue to create overall supply chain problems, with producers continuing to struggle to get products to their destination. The challenges were the subject of a recent joint hearing held by the Assembly Agriculture Committee and Select Committee on Ports and Goods Movement. “I think one of the things that’s good is they recognize there isn’t one solution but there has to be multiple solutions that have to come forward,” said California Farm Bureau President Jamie Johansson. “One of those being the gross vehicle weight limits.”

supply chain problems
Photo by Tom Fisk on Pexels.com

California increased trucking weight limits to 88,000 pounds with temporary permits being valid through June 30. Other efforts to mitigate the ongoing supply chain challenges have involved federal support to California ports. The U.S. Department of Agriculture had partnered with the Port of Oakland to increase storage capacity for agricultural goods. Some industries have been struggling more than others, but the extended duration of the supply chain problems is beginning to take a substantial toll.

“This is the year that this finally all comes home,” said Aubrey Bettencourt, President and CEO of the Almond Alliance of California. “We’ve been concerned about shipping not functioning, the supply chain having a kink, about our products not being exported. But it’s important to remember that this is not an issue of supply and it’s not an issue of demand. There is plenty of demand to buy our product. In fact, a lot of our product is sold, it’s just not getting there.”

The struggle with port congestion and overall slowdown within the supply chain have been occurring for several months. Initially interrupted by COVID, the supply chain has yet to fully be righted. Many in the agricultural community are calling for more long-term solutions to prevent sizable disruption in the future. “Everyone’s realistic, it’s not going to happen overnight. Even the most positive people I’ve talked to, it’s going to be 18 to 24 months before we see what we would consider normal,” Johansson noted.

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Brian German

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Ag News Director, AgNet West