SOURCE | Fall 2021 3

You are likely aware of global supply chain challenges that have impacted the availability of products across a broad swath of industries . Daily media reports point out the extreme challenges in making timely shipments of products ranging from clothing to electronics , with warnings of severe shortages of many products this upcoming holiday season . With all of this in mind , it ’ s no surprise that supply chain issues are increasingly impacting many of the products supplied by the GROWMARK System . Such impacts were initially felt last spring / summer as we experienced supply shortages and delays of key herbicide and fungicide products , steel goods , lubricants , and other farm inputs .

Combined forces have dealt a serious blow to global supply chains . Disruptions due to COVID-19 resulted in production shutdowns on virtually every continent . Many of the key active ingredients used to formulate agricultural chemicals and adjuvants are produced outside of the United States in countries like China . Along with the direct impacts of the pandemic , power blackouts and environmental policies have further stressed Chinese production facilities .

Pent up demand for consumer goods is resulting in shortages of shipping containers , and the ships that transport them . In addition , labor shortages at key port facilities have led to long unloading times and major backups at key U . S . ports . Once on land , truck driver shortages have challenged the ability of transportation systems to move products to their final destinations .

Several crop nutrient producers postponed planned maintenance in 2020 to protect their employees during the pandemic . This resulted in more production facilities engaged in turnaround maintenance this summer than is typical , which has reduced output . In addition , weather events like the record cold experienced across much of the deep South last winter , and more recently Hurricane Ida , have resulted in significant negative impacts on our ability to access and ship key products like crop nutrients , energy products , and glyphosate . These impacts will likely be felt well into 2022 , and potentially early 2023 , based on what we know today . If it sounds like the perfect storm , you are correct .

GROWMARK has taken significant steps to work with our suppliers and customers to mitigate the many challenges we collectively face . We are closely coordinating with vendors and customers to forecast and plan up to twelve months into the future , while leveraging critical partnerships with both domestic and international partners to access inventory . Discussions of “ Plan B ” and “ Plan C ” product choices , where alternatives exist , are also taking place . When possible , inventories of available products are being built to maximize our ability to meet future needs . Conditions affecting the situation on the ground change daily , requiring that we increase communications to help our customers make informed decisions regarding potential product availability , allocations , or substitutions . Regular conversations with transportation partners are also held to update them as products become available or factors such as weather signal the need to alter product destinations . Flexibility and good communication will be key to effectively working through these supply chain challenges .

By working together and sharing information in an efficient and transparent manner , we are taking steps to ensure all available supplies are distributed for maximum System benefit . I am confident that GROWMARK employees are focused on best processes to provide the products , answers , and creative solutions to help guide the GROWMARK System through these challenging times .