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After the holiday, hopefully you are getting caught up and your head is now above water. Here's a few quick non-weather related risks to be aware of: Coffee, Sodium Cynanide (Tainjin Port), Palm Oil, Soy, and the Earthquake in Southeast Asia.
In my personal supply
chain, coffee is at risk with supply and demand getting out of balance.
Please fight the urge to run down to the grocery store and clean out the
shelves as we've got a few years before we are in dyer straits... and
coffee has a shelf life. I'm considering "spec-ing in" an
alternative material, like Chai Tea.
Sodium Cyanide contamination was a concern after the Tianjin port explosion back in thee fall. And over the holiday, sodium cyanide was detected on some shipments from a Tianjin Pharmaceutical company located about 30km (12 miles) from the port blast sight... and the FDA has issued a warning for companies to monitor for
potential contamination. If you are like me, monitoring Chinese manufactures is
a challenge, but Pharmacompass has compiled a list of companies near the blast area that could be impacted. Check it out.
Palm Oil is up almost 10%, the first rise in 2 years and the most in 5 years, thanks to El Nino/lack of rain. Palm oil is a building block for many products used in our industry, and is usually a leading indicator for a
price increase in these downstream products. Brace yourself.
Soy bean crops in Brazil are struggling due to a lack of rain, and many were
replanted. Soy is a raw material
used in biotech media. Further, poor soy harvest can also impact corn derived products as well as lysine. This is because soy is used as a protein
source for animal feed; if soy becomes expensive, feed manufacturers will
switch to another source of protein such as corn supplemented with lysine
causing swings in those commodities. Be aware.
Colombia is experiencing
a drought, but unlike Brazil, this drought is impacting their
hydroelectric power generation leading to potential electricity rationing
for your suppliers... and increased lead times. While Colombia primarily
produces agricultural related products, they are also into mining (coal,
oil&gas, gold, and nickel). Check your supply chain for impact.
An earthquake hit near the boarder of Bangladesh and Myanmar on
Monday. In my supply chain, I do not see a direct impact to my chemical
suppliers, but check your supply chain.
Author: Charlotte Hicks
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Image Credit : Colombia - Coffee Triangle 030 - coffee plantation tour by Charlotte Hicks is licensed under CC BY 2.0
“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”
