Leprino Foods, which bills itself as the world’s largest mozzarella maker, expects the shipping disruptions hindering agricultural exporters to last all year despite “slight” improvements.
Leprino has had to re-route shipments from Oakland, a major West Coast port for agricultural exports, to alternatives such as Houston and Savannah, Mike Durkin, chief executive officer of the Denver-based dairy company, said Monday in an interview. That has added to the company’s costs and caused it to miss export opportunities.
Durkin called on the Senate to enact House-passed legislation that would prevent ocean carriers serving U.S. ports from refusing to load containers with American farm commodities.
U.S. Agriculture Secretary Tom Vilsack announced a plan earlier in the day to subsidize a 25-acre “pop-up” site near the Port of Oakland to make it easier for agricultural companies to fill shipping containers. Vilsack said the USDA would cover 60% of the cost for the site and pay shipping companies $125 per container to cover additional costs.
Durkin said that’s “a really good start.”
Leprino’s problems shipping its product overseas grew last year and December was the “worst month,” Durkin said. January has improved “slightly,” he said.
Exports were “flat to slightly up” last year but could have increased by 10% to 15%, Durkin said. “The demand was there.”