Among the consequences of the pandemic is an increase in the cost of shipping goods across the seas, together with a lack of the requisite containers. Around 70% of the alfalfa produced is destined for third countries and it is typically sent by boat.
The rising cost of cereals and oilseeds has resulted in an increase in the cost of the compound feeds used to feed animals. Although worldwide cereal production may hit a record high this year, demand is expected to rise by some 2%, meaning prices will remain under pressure. The result could well be an increase in the amount of alfalfa given to milking cows, with a consequentially greater demand from livestock farms which would, therefore, see our business volume being maintained in most cases.
The graphs below show trends and the importance of alfalfa exports to this country.