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Strike impacts – US cotton and meat exports at risk

Strike impacts – US cotton and meat exports at risk


By Jamie Martin

The recent strike by the International Longshoremen’s Association has halted operations at major East Coast and Gulf of Mexico ports, disrupting the export of significant US commodities such as cotton, meat, and poultry. This strike raises concerns about potential long-term effects on grocery prices and availability.

According to the USDA, there should not be any significant changes to food prices or availability in the near term. However, economists warn that a prolonged strike could lead to noticeable changes on grocery shelves. For Arkansas, a leading producer of broilers and cotton, the stakes are particularly high.

Cotton exports, crucially reliant on containerized shipping, are especially vulnerable. Scott Stiles of the University of Arkansas notes that about 55% of the projected 11.8 million bales could be affected if the strike continues. Alternative routes through West Coast ports are being considered for shipments initially destined for the East Coast.

In the meat sector, approximately 20% of broilers are exported, and disruptions could lead to spoiled products or increased storage costs. The strike could also significantly alter beef and pork trade flows, impacting exports to several countries and potentially leading to a realignment of trade routes and partners.

This strike highlights the critical role of port operations in supporting the US agricultural economy and underscores the broader implications for global trade networks and local economies. As the situation develops, stakeholders in agriculture and trade are closely monitoring potential impacts and preparing for possible shifts in the market landscape.

Photo Credit: usda


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