In this file:


·         More supply chain disruptions to come from Chinese lockdowns

·         China lockdowns impacting trade partners



More supply chain disruptions to come from Chinese lockdowns


By Rhiannon Branch, Brownfield

May 5, 2022


An ag trade expert says supply chain disruptions are far from over as COVID-19 lockdowns continue in China.


Gregg Doud, with Aimpoint Research tells Brownfield while backlogs at US ports are clearing up, “We are going to have a conversation here very soon about nothing coming from China. It is déjà vu all over again for us on some of these supply chain issues I’m afraid.”


Doud says there is nothing coming out of China on the supply chain right now including phosphate fertilizer.


“About 1/3 of all the phosphate for fertilizer comes from that part of the world and a lot of the manufacturing to make that fertilizer is done in the Shanghai area which is locked down. What does that mean for the supply of that, not just for China but for the entire world?”


Doud says restrictions by the Chinese government are even preventing some farmers from planting...





China lockdowns impacting trade partners


By Asia Markets

May 5, 2022


Current strict lockdowns in many major cities in China – as the country tries to eradicate the spread of COVID – are not only affecting its local citizens, but also having flow-on impacts on trading partners, including Australia, according to agribusiness banking specialist Rabobank.


Speaking in a recently-recorded podcast, ‘What’s the Impact of China’s Lockdown Wave?’, RaboResearch general manager for Australia and New Zealand Stefan Vogel said, in particular, there are four specific impacts of the lockdowns that are set to have increasing ramifications for Australian agribusiness – disruptions to freight logistics, Chinese corn plantings, dairy demand and hog pricing.


Freight logistics


“The already-stressed global container logistics situation is becoming more complicated due to massive delays around the Shanghai port,” Mr Vogel said.


“The dry container index, which tracks average prices paid for the transport of dry bulk materials across more than 20 international routes, increased five-fold through 2021 as a result of COVID lockdowns in different parts of the world. While the index has since declined and is down 16 per cent since early March and 25 per cent down from the September 2021 highs, it looks likely that the ongoing COVID lockdowns in China will add to continued container logistics issues and keep container freight well above historic levels for 2022 and also likely to remain elevated well into 2023.”


Corn plantings ...


Dairy demand ..


Hog pricing collapse


In addition, China’s COVID restrictions had resulted in a big drop in food service sales of meat products, as well as supply chain disruptions, which had impacted hog production and prices, Mr Vogel said.


“Chinese hog producers have liquidated herds to avoid further losses, imposing further downward pressure on Chinese pork prices which can also impact China’s feed grain import needs,” he said.