The perishables supply chain is a complex, interconnected system directly influenced by global events, economic conditions, and policy decisions. In 2024, these factors created significant challenges, underscoring the fragility and interdependence of the world’s food supply networks.
Crop Yields and Domestic Priorities
Weather patterns, economic pressures, and geopolitical events reshape the global agriculture landscape. Reduced crop yields or smaller herd counts due to environmental or economic disruptions drive up the cost of commodities. High prices make products less competitive in global markets, often forcing producers to prioritize domestic demand. This pivot simplifies operations for producers by reducing labor-intensive exports but leaves global supply chains scrambling to fill gaps.
For the perishables logistics industry, this creates a need for innovative solutions. Consolidated shipping programs and closer collaboration between shippers, importers, and logistics providers are becoming essential. At CFI, we are focused on redefining our approaches to maintain efficiency in this changing environment.
Labor Challenges and Rising Costs
Labor policies, including restrictive immigration measures, have far-reaching effects on agriculture and food production. Workforce shortages in farms and processing facilities increase labor costs, increasing food prices and diminishing global competitiveness. Consumers will only pay so much for basic commodities, forcing the perishables industry to find cost-effective strategies to mitigate rising expenses.
Geopolitical Risks and Disease Threats
The global geopolitical landscape also looms large over the perishables industry. Conflict can devastate crop production and critical infrastructure, disrupting global food supplies. Disease outbreaks like avian flu or livestock illnesses could prompt bans on U.S. exports, drastically reducing international market access.
Adapting to a Dynamic Market
In this uncertain environment, adaptability is key. Collaborative approaches, transparent communication, and forward-thinking logistics strategies are critical. At CFI, we partner with stakeholders to create solutions that navigate these challenges, ensuring the flow of perishables even amid global headwinds. Partner with us to navigate perishables logistics challenges and build resilience into your supply chain. Contact us for collaborative solutions to manage labor costs, geopolitical risks, and global disruptions.
