Will the dockworkers' strike cause higher food prices? Experts weigh in
Square 1 Farmers owner Tim Ryan and Tim Ryan Jr., his son and VP of sales, explain their preparation for supply chain issues ahead of the port strikes and discuss the affect on businesses and consumers.
Unionized dockworkers at East Coast and Gulf Coast ports began a strike Monday that will affect the flow of goods through ports that handle about half of seaborne trade to the U.S. and could have an impact on food prices.
Ports affected by the International Longshoremen's Association strike are key hubs for food imports from places like South America and Central America. For example, about two-thirds of bananas arrive at East Coast and Gulf Coast ports.
The U.S. Department of Agriculture (USDA) released a statement Tuesday saying it doesn't anticipate food prices will be significantly affected by the port strike in the near term.
«Our analysis shows we should not expect significant changes to food prices or availability in the near term,» the USDA said. «Thanks to the typically smooth movement through the ports of goods, and our strong domestic agricultural production, we do not expect shortages anytime in the near future for most items. Likewise, non-containerized bulk export shipments, including grains, would be unaffected by this strike.
DOCKWORKERS GO ON STRIKE AT EAST AND GULF COAST PORTS
The USDA has said it doesn't see the port strike affecting most food prices in the near term. (Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)
»For meat and poultry items that are exported through East Coast and Gulf Coast ports, available storage space and redirection of products to alternative domestic and international markets can alleviate some of the pressure on farmers and food processors.
«We are keeping an
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