SALEM, Ohio — As the dockworkers strike on the East and Gulf Coasts begins, American farmers are preparing for the economic fallout.
The strike began Oct. 1, with approximately 45,000 dockworkers who are members of the International Longshoremen’s Association (ILA) walking off the job. They are demanding better wages as well as a moratorium on port automation that replaces jobs or historical labor tasks, according to an ILA statement.
“Our position is firm: we believe in the value our incredible rank-and-file members bring to this industry and to our great nation. They deserve a contract that recognizes their contributions, secures their jobs, and reflects the profits generated by their labor,” the union wrote.
The strike now brings work at many of the country’s largest ports to a halt, jeopardizing billions of dollars in agriculture imports and exports.
Agriculture groups are watching with concern. According to Zippy Duvall, president of the American Farm Bureau Federation, while many industries rely heavily on foreign trade, agriculture in the United States stands out for underpinning the country’s health and wellness.
“While there is a risk of shortages of some items, the United States is fortunate that it can meet its nutritional needs without importing food,” Duvall said in a press release.
But he believes the ramifications for farmers and ranchers could be far-reaching. U.S. farmers, he warned, rely on foreign trade to sell billions of dollars worth of products, and the strike might strand perishable goods at docks, causing spoilage and jeopardizing farmers’ livelihoods.
According to the American Feed Industry Association (AFIA), grains, animal feed and hay made up 2.18 million metric tons, or more than 70%, of waterborne exports from East and Gulf Coast ports.
According to Associated Press reporting, supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods and moved ahead shipments of holiday gift items.
But a prolonged strike could hurt the livestock and pet food industries, AFIA President and CEO Constance Cullman said, in a statement.
The U.S. relies significantly on imported ingredients—vitamins, minerals and amino acids—to keep animals healthy, and nearly all of certain key vitamins are sourced from other countries. Cullman said the strike might result in empty shelves in animal food aisles if supply lines are not quickly restored.
“Where alternative ingredients or shipping routes can be found, animal food manufacturers 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.”
With discussions between the ILA and the United States Maritime Alliance—a coalition of container carriers, employers and port associations—at a standstill, other agricultural stakeholders are becoming anxious. A strike that extends throughout the holiday season might cause huge economic losses, especially in industries that rely on timely exports, such as dairy and cattle.
Dairy and animal food industries are particularly susceptible to long-term disruption. According to the United States Dairy Export Council (USDEC), the walkout threatens $32 million in weekly dairy exports, threatening both U.S. dairy farmers’ livelihoods and their connections with international buyers.
“Global customers depend on the reliability of U.S. dairy products,” said Krysta Harden, president and CEO of USDEC, in a statement. “Delays caused by this strike not only risk damaging those relationships but also severely impact perishable dairy products that require timely delivery. The negotiating parties need to come together to find a resolution and ensure port operations resume as soon as possible.”
Meanwhile, for farmers, the strike comes amid mounting pressure stemming from the expiration of the 2018 farm bill on Sept. 30.
The majority of the funds it provides for critical support programs, which are intended to help farmers experiencing hardships such as Ohio’s historic drought or market downturns, will not expire until the new year. However, without a new farm bill, safety net programs designed to help the agricultural industry are in danger, potentially causing more hardship down the line for those most in need.
Call to Action
Agriculture industry leaders have called for a quick resolution to the strike. The AFIA, USDEC and others urged the Biden administration to intervene in the dispute before the shutdown.
But President Joe Biden, who joined striking auto workers last year on the picket line, has so far chosen not to get involved. Under the 1947 Taft-Hartley Act, the President can request an 80-day cooling-off period, effectively postponing the strike.
However, according to the AP, Biden has voiced reluctance to use the act, instead citing his faith in the collective bargaining process.
“We urge both sides of the dockworker disagreement to work on a solution that will return vital ports to normal operations,” Duvall, president of the American Farm Bureau Federation, said.
