Feed Update
Nov 09, 2021
Many of you may be asking, “What is the deal on feed cost fluctuations or increases?”
Just like you are hearing on TV and radio, supply chains are backed up and transportation is at a premium. We are getting told to purchase Christmas gifts early, and don’t wait until the week before, or the shelves may be empty. Your feed department is running into similar issues.
The U.S. livestock industry buys many feed ingredients like vitamins, trace minerals and amino acids from overseas because they are not manufactured domestically. As many of you have heard, cargo ships have slowed, and ground transportation has had difficulty keeping up. All of this has created some issues with not only getting ingredients, but especially getting them in a timely manner. Suppliers are allocating our ingredient purchases based on previous purchases from them. In some cases, suppliers have broken purchasing agreements because they simply were unable to get their supplies. UFC has been very fortunate, to date, and we have been able to maintain an inventory of these ingredients because of relationships we have developed over the years with our suppliers.
This is all a global issue that was in part created by Covid-19. The perfect storm of companies shutting down (both domestically and internationally), inventories being depleted, lack of trucking, along with labor shortages and ports being backed up, all at the same time, has created issues along the entire supply chain. We believe this scenario will last well into 2022.
We will continue to be proactive on securing these ingredients for our patrons. If we anticipate shortages, we will be communicating with you ahead of time so we can adjust rations accordingly. If you have specific questions or concerns please give us a call. Thank you for your business and trust in the UFC Feed Department!!
KELLY POWELL
FEED SALES MANAGER
Just like you are hearing on TV and radio, supply chains are backed up and transportation is at a premium. We are getting told to purchase Christmas gifts early, and don’t wait until the week before, or the shelves may be empty. Your feed department is running into similar issues.
The U.S. livestock industry buys many feed ingredients like vitamins, trace minerals and amino acids from overseas because they are not manufactured domestically. As many of you have heard, cargo ships have slowed, and ground transportation has had difficulty keeping up. All of this has created some issues with not only getting ingredients, but especially getting them in a timely manner. Suppliers are allocating our ingredient purchases based on previous purchases from them. In some cases, suppliers have broken purchasing agreements because they simply were unable to get their supplies. UFC has been very fortunate, to date, and we have been able to maintain an inventory of these ingredients because of relationships we have developed over the years with our suppliers.
This is all a global issue that was in part created by Covid-19. The perfect storm of companies shutting down (both domestically and internationally), inventories being depleted, lack of trucking, along with labor shortages and ports being backed up, all at the same time, has created issues along the entire supply chain. We believe this scenario will last well into 2022.
We will continue to be proactive on securing these ingredients for our patrons. If we anticipate shortages, we will be communicating with you ahead of time so we can adjust rations accordingly. If you have specific questions or concerns please give us a call. Thank you for your business and trust in the UFC Feed Department!!
KELLY POWELL
FEED SALES MANAGER