Brazil Strike (Trucking/Diesel) Affects Shipments of Stakes to Growers

If you are having trouble finding and receiving shipments of wood vegetable / tomato stakes, you might be wondering how it is that there seems to be a shortage of vegetable stakes in America. In short, the Brazil strike (oil / diesel truckers) has affected nearly every industry in Central America, including the tomato / vegetable stake industry.

Here’s a brief timeline of how the strike occurred:

  • In Brazil, on May 18, 2018, the diesel trucking industry announced it’s intention to strike beginning on May 21st if the Brazilian government did not halt the price hikes for fuel that had been ongoing since 2016.
  • Yet, the very next day, Petrobra`s announced yet another price increase which fueled the tensions.
  • May 21st brought the first official day of strike and many roads in Brazil and surrounding areas were blocked completely by protestors burning tires, and general unrest.
  • By May 23rd airports began to suffer from lack of fuel source shipments, as did many other area businesses and industries like Ford, Chevrolet and Fiat.
  • By the end of the day on May 24th inflation kicked in and prices of all goods soared. It was reported that in Rio De Janeiro a bag of potatoes was going for $136.30 / gallon USD.
  • A truce was proposed and Petrobra`s announced an overall temporary price cut by 10% for a period of 15 days while the government worked on said truce.
  • By May 25th it was clear that the truckers were continuing their strike and the lack of oil caused major disruption to airports, universities were closed, and even emergency services began to suffer.
  • In spite of the President’s threat to fine any company, up to $100,000 an hour for each hour they continued the blockade, still the truckers carried on for more than 9 days causing soaring fines of more than $141.4 million amongst 96 transport companies.
  • On May 31st, the government issued mandatory reductions in oil prices at gasoline stations and threatened fines to any who did not comply.
  • On June 1, the President of Petrobra`s was asked for resignation on the heels of his consistent price hikes during his tenure since 2016.

 

The Brazil strike has now ended but there will be long lasting effects on both the Central American flight, shipping and transport industries. It is estimated that the diesel strike will cost more than R$3.4 billion in expenses, resulting in increases on taxes and for exporters, long term.

There could not have been a worse time for growers, than during the peak of vegetable stake season!

What does the Brazil Strike mean for growers and stake production / shipping?

Since the majority of wood vegetable stakes come from Central America, the industry has seen large scale shortages on stakes over the past few months. This doesn’t look to slow anytime soon, even though we are in the peak of growing season.

Additionally, it is highly likely that there will be a long term effect of rising prices as exporters continue to incur these price hikes and increased taxes and pass them off to buyers around the world. CNN reports that Brazil is still struggling, weeks after the strike has ended!

What is the good news with Everstake and the Brazil Strike?

The Brazil Strike on diesel / shipping  may have caused a crisis in Central America but it has NOT affected the production or shipping of stakes for Everstake!

There is NO shortage of the highest quality, most durable, organic stakes in the industry, Everstake!

Everstake currently has, in stock, 48”, 54”, 60” and 72” stakes available, and READY TO SHIP in truckload quantities!

Ready to start your custom order? Contact Brad or Tom TODAY and get your stakes ASAP!

Brad Merry

Call: 706.833.3191
Email: brad@merrylumber.com

Tom Morris

Call: 336.963.2011
Email: tmorris640@gmail.com

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