California

Supply chain issues still impacting local farmers

The Ikeda Brothers are moving to take their plants out the door.

“We’re going to send to Canada, to Mexico, some to the Pacific. It’s probably less because of the closure of the ports, “said farmer and owner of Ikeda Brothers, Tom Ikeda.” We’re a new product, so we can’t wait for one. I have friends in the nut business and they are working hard.

Fuel prices and the lack of vehicles are increasing the cost of transportation.

“In the last year, year and a half, I say the price has gone up by about 20%,” Ikeda said. “As a food farmer, we have a wide market system, it’s not very easy to set those added costs.”

The problems of the chain are not just about letting go.

“Farmers are hitting on both sides, the inconsistency of the inputs they need – think of the box, think of the glass for the wine bottles, think of the fat – and and ultimately move those products to market. more expensive, “said Brent Burchett, Director of the SLO County Farm Bureau.

Since 2019, Cal Poly Business Professors Cyrus Ramezani and Chris Carr have studied at major ports including Long Beach and Oakland thanks to a partnership with the U.S. Department of Agriculture.

“The logistics chain from door to door from the very beginning has been hampered by COVID and it has created bottlenecks,” said Cal Poly Finance Professor Cyrus Ramezani.

Research shows that market turmoil makes it difficult for small farmers to compete.

“Big companies can have a lot of logistics chain, or they can have to keep the cost down because they have a lot,” Ramezani said.

Technology has become an asset to large businesses.

“Software for managing your store, software to organize the collection and release, there’s software to track your product and where they are in the world,” Ramezani said.

But in order to break down the digital divide, resources need to support developers.

“We support that technology for them, in the form of introducing training programs to teach farmers how to use digital technologies to control their shipments. We also hope to do that. they are in agricultural companies where farmers can buy basic equipment, important things like the chassis, ”Ramezani said.

Farmers want to see a short -term solution.

“is it [technology] It can help with planning and things like that but the biggest problem is the stability of the ports, ”Ikeda said.

The SLO County Farm Bureau said they are concerned about the impact of the drought on local produce. Unemployment is another problem in the air.

Professor Ramezani and his colleagues will meet with policymakers on June 16, 2022, to further discuss solutions to the supply chain problem.

To learn more about research, click here.

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Supply chain issues still impacting local farmers Source link Supply chain issues still impacting local farmers

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