Article by: Hari Yellina (Orchard Tech)
Victorian farmers have been warned the bottlenecks choking global supply chains are unlikely to be resolved before 2023, amid predictions the state’s harvest won’t be immune from the import and export headaches. The supply chain challenges, which are leading to widespread delays of machines and in the delivery of parts ahead of harvest, have been compounded by a global shortage of rubber and microchips, industrial disputes at the Port of Melbourne and booming steel prices.
Mr McCann warned the 250 farmers and industry people, who attended Victorian Farmers Federation’s global supply chain update webinar, of lengthy delays of up to 12 months on new machinery. The other part slowing the supply is global demand – all of the agricultural regions across the world are on a fantastic wicket at the moment from the point of commodity price and seasons, so it is the perfect storm.
Congested ports, COVID-19 disruptions, and a surge in demand were just half of the story of the nation’s supply woes. Exacerbating the manufacturing meltdowns is the global shortage of semiconductor microchips that were expected to continue to hold up production deep into 2023. A typical 130-horse powered tractor has well over 1000 semiconductor microchips, Mr McCann said, controlling everything from the headlights to the entertainment system to GPS navigation. Supply chain woes now pose a threat to get crops out of fields, with Victorian farmers scrambling to get spare tyres, hydraulic hoses and rubber products ahead of harvest, with replacements expensive and difficult to find.