Sheep Industry News December 2021

Industry Not Immune To Supply Chain Shortages

I f you've tried to buy just about anything in the past year, you've probably gotten a first-hand look at the supply chain issues that are plaguing the United States. From vehicle and tractor parts to electric fence and labor, it seems that nearly everything is affected by the supply chain dilemma. "Companies around the world are battling supply chain bottlenecks as a post-pandemic spike in demand converges with industrial production struggling to catch up after lengthy COVID-19-induced shutdowns," read a story on CNBC.com. Unfortunately, short-term solutions to the problem are few and far between as empty store shelves and back-ordered web sites become the norm. In the same story, Siemens Energy CEO Christian Bruch told CNBC , the industrial world is going to be dealing with this "for quite some time. It is going to be way into 2022 and honestly, my belief is managing the supply chain will be something which will be with us for a long time." The American sheep industry isn't immune from the issue. Producers, packers, wool warehouses and others across the United States are reporting difficulty in acquiring everything from fencing and vehicle parts to labor and shipping challenges. And even if they can find a way to acquire the needed materials, there's no doubt it will cost more. "We're trying hard to make lemonade out of lemons, but there's so much that is out of our control right now," said Pre mier 1 Supplies CEO and General Manager Ben Rothe. "Keeping products in stock has been a challenge all year long. That can lead to frustrated customers. "We're trying to keep our stock updated on the website and let customers know about delays when they occur. I like to think things will be back to normal by 2023, but I didn't think it would last even this long. Our suppliers are saying it will be at least the middle of 2022, and maybe 2023." Congestion at the nation's ports has slowed the influx of prod ucts manufactured overseas. And even once they arrive, there's a shortage of truck drivers needed to deliver those products and parts throughout the United States. "One bottleneck causes many downstream ripples," Rothe added. Double J Lamb's Jeff Hasbrouck had enough on his plate trying to re-open a deserted Texas lamb plant in the middle of a global pandemic, but the supply chain issues have made it

difficult to acquire everything from fabricating tables to plastic wrap necessary to sustain the continued expansion of the long shuttered plant. "It's definitely put us behind by a couple of months," he said. "We were hoping to have the fabricating operation running in the spring, but we finally got it going the last week of October. A lot of the equipment was made in Greeley (Colorado), but the fab tables are made from stainless steel, which isn't easy to get right now. And the company had some labor issues. Everything just takes longer and costs more right now." The company's Ault, Colo., based feedlot operation has also had to cast a wider net for simple things such as oil filters for vehicles and tractor parts. "But help is the No. 1 issue," Hasbrouck said, adding that includes on the feedlot and in the form of truckers to haul feed from Nebraska or to drive lamb carcases from the Texas plant out to the East Coast. Tom Grommus of Wool Sacks was a bit more upbeat than most, saying the company had been fortunate to plan ahead for delays and felt confident with the number of both nylon and burlap bags it had distributed to wool warehouses around the United States. New supplies were scheduled to arrive around the first of the year. "If there are some delays, we've got enough supply to get the shearing season started," he said. "Ninety percent of American wool ends up in the nylon sacks, so they are important. But the burlap is important too because that's usually how it gets from the rancher to the wool warehouse. We started talking to our suppliers in China pretty early." Unfortunately, Grommus received news of expected delays just a day after being interviewed for this story. "We're not out of the woods yet," he said. "But we're not in the same position that some people are in. We do have a good amount of bags in the U.S. from past orders, so we should be safe." ASI Executive Director Peter Orwick said this isn't an issue the sheep industry – or any industry for that matter – can solve on its own. ASI has filed comments with the U.S. Department of Agriculture's Agricultural Marketing Service concerning supply chain issues and is working with the agency and congressional leaders to search for answers to the situation. In the meantime, planning and patience are key in dealing with the ongoing problem.