AFIA - American Feed Industry Association

10/01/2024 | Press release | Distributed by Public on 10/01/2024 14:31

Port Strike Poses Serious Threat to US Animal Food Security

Port Strike Poses Serious Threat to US Animal Food Security

October 1, 2024

Contact Victoria Broehm

Key Points:

  • The East and Gulf Coast port strike has begun, posing a significant threat to animal food manufacturers' ability to produce affordable, high-quality nutrition for domestic livestock and pets.
  • The port closures will severely restrict animal food exports and imports, leading to substantial economic losses for the animal food industry and risking both foreign customers and jobs.
  • Should the strikes be prolonged, delays in receiving essential ingredients, such as vitamins, minerals, amino acids and micronutrients, will jeopardize animal health and drive-up costs for farmers and pet owners.

The U.S. animal food industry now faces reduced supplies of essential ingredients, equipment, packaging and other goods used in the production of livestock and pet food following the failure of the United States Maritime Alliance (USMX) and International Longshoremen's Association (ILA) to reach a compromise.?With more than 45,000 dockworkers at East and Gulf Coast ports beginning their strike today, the American Feed Industry Association (AFIA) warns of long-term economic repercussions, potential animal food supply issues and escalating costs for farmers and pet owners.

In response to the labor strike, AFIA President and Chief Executive Officer Constance Cullman issued the following statement:

"The failure of the USMX and ILA to reach a labor agreement or of the Biden administration to intervene before the contract deadline now means that U.S. animal food manufacturers face a dire trading situation that mirrors - or could be worse than - the days of the COVID-19 pandemic. The lack of compromise not only puts these 45,000 dockworkers out of work - it also threatens the livelihoods of thousands of dedicated individuals throughout the animal food industry.

"Our industry does not have a choice to provide vital nutrition to farm animals and pets - we have a responsibility. Yet, with reduced access to imports of essential ingredients, packaging materials, equipment or other goods, production of animal food may be limited at best. The animal food industry relies heavily on the interdependence of smooth shipping routes and has spent years building relationships with foreign buyers and sellers, yet overnight, could lose the ability to access or do business with international markets.

"Where alternative ingredients or shipping routes can be found, animal food manufacturers will do their best to produce feed, pet food and treats, but will likely incur increased prices that, unfortunately, must be passed onto farmers and pet owners. Where alternatives do not exist, due to logjams at other ports or unavailable ingredient options, feed and pet food aisles may go bare should the strike be prolonged

"The Biden administration needs to tell the two parties that walking off a short dock is not a solution to their labor squabbles; the entire U.S. economy and our human and animal food supply depends on them getting back to work."

Over the past several months, the AFIA has been working diligently through the Agriculture Transportation Working Group to call on the Biden administration to intervene in these port labor disputes to prevent the port shutdown, citing catastrophic economic losses to the food and agriculture sector. According to the American Farm Bureau Federation, in 2023, grains, animal feed and hay accounted for 2.18 million metric tons, or more than 70%, of waterborne exports that ship from East and Gulf coast ports. Many AFIA members use these ports for importing vital feed inputs, such as vitamins and amino acids, as well as equipment and other critical components.

Prolonged port closures could escalate into an animal welfare crisis. Compounding the problem, some essential ingredients (e.g., vitamins, minerals and amino acids) that are critical for maintaining animal health are overwhelmingly sourced from abroad. For example, almost 100% of vitamins are imported, showing that even brief delays in shipments could significantly affect livestock and pet health.

In 2023, the overall export value for feed, feed ingredients and pet food stood at $13.4 billion and imports stood at an estimated $5.4 billion.