Pet Food Processing - November 2023 - 30

REGULATORY
International
demand for US pet
food continues to
increase. In 2022,
the United States
exported $2.48
billion of dog and
cat food overseas,
with $264 million
worth of exports
going to China.
©Bakemon - stock.adobe.com
Certain critical pet food ingredients, such as vitamins,
can only be sourced abroad and, therefore, we are dependent
upon the supply chains necessary for their
transportation around the world. An AFIA member recently
described these disruptions as, " ...a domino chain
of impact that negatively impacts our operations with
real financial costs associated that we have to absorb. "
Interruptions at California's Los Angeles and Long
Beach ports can result in cascading effects, with products
facing delays or accumulating in warehouses, increased
warehouse expenditures, and potential lost sales.
While the AFIA believes the contract agreement is a
move in the right direction, it is essential that the industry
remains vigilant when labor relations are involved,
be they at ports, on rail or otherwise.
Combined with external factors, such as regulatory
changes or global trade tensions, situations like this can
evolve quickly. Considering that, the US pet food indusA
looming supply chain challenge that threatens pet food
production is the US industry's dependency on imported
vitamins, most of which come from China.
©Mike Mareen - stock.adobe.com
try has reasons to be optimistic; a more stable port operation
can lead to better planning, forecasting and overall
supply chain efficiency. However, continued monitoring
and contingency planning remain crucial to navigate
any unforeseen challenges effectively, and agriculture
must speak up when challenges arise.
The resiliency of the supply
chain has never been more critical
for the US pet food industry. "
Gina Tumbarello, American Feed Industry Association
Port efficiency under threat
Amid the unfolding dynamics at the two West Coast
ports, a new layer of complexity has been introduced. In
a recent letter to the mayors of Los Angeles and Long
Beach, the AFIA and a number of businesses across
agriculture and other sectors expressed grave concerns
over the potential implementation of an Indirect Source
Rule (ISR) by the South Coast Air Quality Management
District (SCAQMD).
The ISR aims to limit the import and export of goods
from these ports, and its ramifications could be farreaching.
One primary concern is the effect it would
have on maintaining the flow of goods at the port. The
SCAQMD staff's initial proposal points toward volume
caps on port activities, which could hinder the delivery
of essential imported goods, including critical components
for various industries and medical supplies.
Moreover, it could stifle the export of US-manufactured
products and agricultural outputs.
The AFIA encourages the mayors to delve deep into
the proposed rule's implications and reconsider its potential
enactment. As global supply chains grow ever
more intricate, such decisions carry weight, not only locally
but also on the international stage.
The vitamin dependency quandary
Another threat that looms large is the US animal food
industry's dependency on imported vitamins, notably
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Pet Food Processing - November 2023

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