🌾 Wheat's power move + crop protection MIA, citrus demand skyrockets & more

The pandemic might be winding down, but its effects on the ag supply chain are still ramping up.

Herbicides and fungicides are the latest to face supply constraints due to pandemic production delays, shipping bottlenecks, and increased demand.

While the popular glyphosate and glufosinate herbicides are getting the most attention, several fungicides are facing shortages as well.

The backstory: Abrupt, emergency shutdowns in China at the beginning of the pandemic kicked off supply issues. Glufosinate and glyphosate, among other chemistries, are produced in China or have ingredient sources overseas.

And China is looking out for #1...China. This means American farmers are put last in line for the much-needed inputs. Not a great scenario with expanding acres and sky-high commodity prices fueling demand.

In some instances in the U.S., where producers didn’t prepay, RaboResearch notes that prices are up 50%.

Crunch time: In response to the glufosinate shortage, BASF noted they were even beginning to expedite shipping using air freight rather than traditional ocean-bound containers.

Where this goes: Some farmers may have to use unfamiliar alternatives to their preferred chemistry, including generics. And farmers may have to phone-a-friend, or several, to find supply before this all gets resolved. Experts are projecting issues to be sorted out by Q2 of 2022.

→ No more labeling shenanigans. The DAIRY PRIDE Act has been reintroduced to Congress to pass labeling rules that non-dairy animal products can no longer use ‘milk,' ‘cheese,’ or ‘yogurt’ on their packaging.

→ Tyson all-in on traceability. The company’s Fresh Meats business will be the first corporate meat company to invest in the country-wide infrastructure that tracks foreign animal disease outbreaks.

→ The next livestock industry: insects. Rabobank released new research last week, projecting insect protein production to reach 500,000 tons by 2030, with inroads to becoming a major input in animal feed.

→ Can’t stop the spread. Bulgaria will cull another 40,000 laying hens due to a bird flu outbreak, the fifth case to hit the country so far this year.

→ Bayer has produce to thank. The ag business noted higher prices in the specialty crop arena as a booster to earnings that will be released on May 12.

→ Climate solutions are mainstream. The Growing Climate Solutions Act, a bill focused on voluntary carbon markets, passed through the Senate Ag Committee last week and will head to floor consideration.

→ Precision potato planting. Global agritech leaders Dewulf and Agrointelli have teamed up to work on autonomous robot vehicles that will prep soil and plant the tubers without a human driver.

Brazil meatpackers aren’t messing around.

High corn prices have big-time meat players, like JBS and BRF, influencing a pivot to wheat planting intentions. Brazil’s ag federation revealed data pointing to a potential 40% increase in hectares of wheat.

The reason? Wheat is the solid, affordable alternative to corn in pork and poultry feed. Other winter crops like triticale and barley are also being gobbled up in futures markets.

Desperate times call for desperate measures. Dry conditions have curbed Brazil’s corn yields, leading to a price spike. Plus, the country’s second corn crop is already being delayed, putting meatpackers in a tough predicament.

The government is turning to Paraguay and Argentina for corn, but even that’s not enough. Brazil went as far as to kick import duties to the curb due to the shortage, allowing corn imports from the United States and Ukraine.

Do the math: With U.S. corn futures at eight-year highs, it’s not like American farmers are necessarily passing out deals. One trader even noted that without import duties, trying to siphon corn from other nations still ‘doesn’t make economic sense.'

MAGNETIC'S MUST-SEE STUFF

Livestock producers, take note. A handful of commodity groups have come together to produce a series of videos on how to prep an emergency action plan for your operation.

Reader Q/A: Mary from Illinois asked us, ‘Who’s writing the Magnetic content? I’m a big fan!’

Mary, we’re glad you asked! The Magnetic writing team is a half dozen part-timers from across the country. We come from various industry sectors - row crop, livestock, policy, and even an ag teacher!

→ Ever been interested in joining the Magnetic writing squad? Let us know here.

Farming in southwest Minnesota since 1870, Fairland Farms knows all about the ever-changing game of production agriculture.

So it’s no surprise that in 2008, they began feeding their pigs a smoothie-style meal of upcycled ingredients. Locally sourced brewer’s grains, whey, soybean meal, and even truckloads of ice cream became the go-to source of protein. The main ingredient - Richfeed - is even patented by the family.

All that said, Magnetic Ag is excited to partner with Fairland Farms to share their quality, flavorful meat with our awesome reader community.

How This Works

Like our standard referral program, simply use your unique referral link below, and for every sign-up you generate, you get entered to win a hand-picked bundle - a wide assortment of favorites - from Fairland Farms!

If you win the package, then we’ll randomly select someone you referred to win a handpicked bundle, too. More shares = better chance of you and those you refer to end up with some Grade A pork on your front porch.

Your unique referral link:

Best ways to share? Text your farmhands. Message your grower customers. Launch that link out to your Farm Bureau committee.

*Sharing for the giveaway will end at 11:59 pm Thursday.

Lemons, limes, and mangos agree that 2020 was a lemon of a year - a little sweet, a little sour.

The shutdown of foodservice establishments during the pandemic cost substantial lemon and lime sales since restaurants and bars use the lower grade, smaller stuff that retailers don’t want on shelves.

On a normal year, holidays squeeze out a few more sales, but for the most part, lemons and limes are produce aisle staples. Think lime+guac, lemon+seafood, slices of lime+adult beverage, etc.

Because of this ap[peel]ing versatility, limes and lemons benefited from the pandemic boom in retail demand for produce.

Zoom out: On another bright side, consumption has steadily increased over the last decade.

Lemon imports increased by 239 million pounds from 2010 to 2019, a 246% gain. This raised the import share of the total lemon supply to 19%. The domestic lemon share also received a 46% boost, reaching 1.41 billion pounds in 2019.

You know what they say, when life hands you lemons...

Limes weren't left out either. Per capita, lime availability rose 50% from 2.6 pounds in 2010 to 3.9 pounds in 2018. Lime imports increased 560 million pounds from 2010 to 2019, a 70% jump.

Mangoes heard about this crushing lemon/lime success and wanted in on the fun. They are moving from small exotic fruit sections into the larger mainstream spots.

And it’s working: 2020 was a record year for mangoes, with a double-digit lift in volume velocity, at 12%. Whole-mango dollar velocity was up 19% year over year.