ARLINGTON, VA. — With more than 45,000 dockworkers at East and Gulf Coast ports beginning their strike on Oct. 1, the American Feed Industry Association (AFIA) is warning of long-term economic consequences, potential animal food supply issues, and escalating costs for farmers and pet owners.
The US animal food industry faces reduced supplies of essential ingredients, equipment, packaging and other goods used in the production of livestock and pet food, the AFIA said, following the failure of the United States Maritime Alliance (USMX) and International Longshoremen’s Association (ILA) to reach a new labor agreement.
The strike, the first by ILA dockworkers from Maine to Texas since 1977, is happening at a time of year when US exports typically increase. About 40% of US containerized agricultural exports move through the ports along the East and Gulf Coasts.
Constance Cullman, president and chief executive officer of the AFIA, said that US animal food manufacturers are facing a “dire trading situation” that mirrors — or could be worse than — the supply chain disruptions resulting from 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,” Cullman said. “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, it could lose the ability to access or do business with international markets,” she added.
Over the past several months, the AFIA has been working 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 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.
“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,” Cullman said. “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.”
Prolonged port closures could escalate into an animal welfare crisis, the AFIA said. Compounding the problem, some essential ingredients — such as vitamins, minerals and amino acids — that are critical for maintaining animal health are overwhelmingly sourced from other countries. For example, almost 100% of vitamins are imported, showing that even brief delays in shipments could significantly affect livestock and pet health, the AFIA said.
With over 650 domestic and international companies that represent the total feed industry —manufacturers of commercial and integrated feed and pet food, ingredient suppliers, pharmaceutical companies, industry support and equipment manufacturers — AFIA’s members manufacture more than 75% of the feed and 70% of the non-whole grain ingredients used in the United States.
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.
“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 US economy and our human and animal food supply depends on them getting back to work,” Cullman said.
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