Ag Innovation Update Q2 2021

Supply chain disruptions, rising costs impacting food industry

Drivers

  • As more people are getting vaccinated, restaurants are seeing an increase in patrons and therefore are needing to increase their food supply. Food production companies are having to ramp up production and reconfigure logistics to meet the increased demand.
  • Higher prices for corn and soybeans are driving up demand for agricultural equipment. 

Drawbacks

  • The rising cost of food ingredients, the high demand for cold storage (both physical space and vehicles) and supply chain disruption of food packaging materials are all reasons for the increased cost of food.
  • While the demand for agricultural equipment is increasing, supply chain disruptions continue to delay the output and shipping of products.

 

  Average Hourly Wage
Occupation USA QC MSA
Maintenance Workers, Machinery $24.98 $23.43
First-Line Supervisors of Production and Operating Workers $32.12 $29.93
Production Workers, All Other $17.13 $19.98
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