As an export nation, we need to get our product to market. Much has been said about the strong demand for beef in the USA, but currently, there’s a BIG problem. The port workers in the West Coast of the USA are in a dispute with their employers. The problem our exporters face is beyond their control but as a result of this issue, goods passing over the docks have slowed dramatically and a long backlog has developed. Containers are sitting on ships and distribution trucks sit idle.
This is a major problem. It has the potential to damage not just exports from New Zealand but also the US economy, and the economy worldwide. The domino effect has already kicked in – for example, Honda has slowed production, directly because of this port dispute.
Interestingly our media hasn’t yet picked up on this and economists are still talking up the beef exports to the USA. If you are interested, I suggest you google and check it out.
We live in a global village and what happens on the other side of the world can have an impact in our backyard.
John Barber