Will the Good Times Last? (Part 2 of 2)

From AgriMarketing Magazine - There’s an ongoing debate within production agriculture. Most people agree that the industry is experiencing some of the best times in recent years; however, they question and disagree on whether the current trend is sustainable. Coming to a consensus on when change will occur is difficult, but assessing the supply and demand forces shaping the situation will provide some insight. In our first column, we described how three forces—ethanol and energy, the exchange rate and global production—are affecting the industry. The final two forces—food and fuel, along with weather and wheat—add further implications for continuing strong prices and incomes for the next three to five years.


Opportunities in the Fresh Produce Supply Chain

We watched as 2020 unleashed volatility on our food and agribusiness supply chains. In the fresh produce supply chain, disruptions impacted the seed industry, growers, shippers, wholesalers and retailers. While consumer behaviors and preferences also shifted during this time, shoppers continued to place importance on choosing grocery stores based on the availability of fresh foods — especially high-quality fruits and vegetables.

Transitioning to the Long Term

This paper, published in the 2019 Special Issue of the Economic Review, explores how the agricultural sector might bridge the gap between its current state, where commodity prices and revenue generally have been low, to a longer-term future with greater economic potential.

Segmenting an Evolving Industry

For many years, weather, disruption and unforeseen circumstances have been the root of issues affecting the agricultural value chain. Specifically, this year, excessive rainfall early in the planting season caused delays for crop farmers, and rising tensions from reports in the dairy industry have created challenges there.