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China Impacted by Floods

07/27/2021

Severe flooding of central China has impacted supply chains and will result in considerable damage to the economy.  Henan Province with a population approximately one third that of the entire U.S. was at a standstill last week with rail traffic through Zhengzhou, the Capital stalled.  Power plants are short of coal and highways are congested with stranded semis and other vehicles carrying food and supplies. Inability to convey hogs to slaughter is creating difficulties for both farmers and packers.

 

Heavy rains that disrupted livestock farming during July 2020 apparently resulted in dissemination of African swine fever.  Given the fact that the infection is endemic in many parts of the country, recent floods could result in an upsurge of infection.