The Friday Report: March 22nd, 2019

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Two Week Delay Approved to Avoid No-Deal Brexit

In an attempt to help avoid the U.K. leave the EU without a deal, European Union leaders approved a delay of two weeks

 for additional negotiation and planning.  On April 12, Prime Minister Teresa May will need to determine whether the U.K. will leave the EU without an agreement or request an additional extension.

Leveraging the extension may be helpful in helping to bridge the gap between Pro-Brexit hardliners in her own party with others who may yet provide support for an agreement.  If Teresa May can get an agreement approved, the EU will allow the UK to remain in the bloc until formalities can be completed May 22nd.

Increase in U.S. Oil Supply Boosts Influence on Global Prices

The boom in the U.S. oil shale industry has bumped up production by approximately a third since 2016.  Exports have been surging to Asia and Europe at the same time as output from the North Sea has plateaued.  This has placed the U.S. in the position of being a viable competitor. 

Changes in the global benchmark may be on the horizon, incorporating both WTI and Brent.  European oil producers face more competition from the United States, eclipsing that of Norway and the U.K. 

Tyson Foods Uses DNA to Validate Premium Beef Pedigree

In an effort to respond to consumer demands for traceability, Tyson Foods Inc. announced that it plans to use DNA samples from elite cattle to track prime cuts of meat to the ranch at which the animals were raised.  Currently the beef supply chain is fragmented.  Different businesses are responsible for growing, feeding and the processing of cattle.  This makes traceability back to the ranch or farm level very problematic.  Tyson views the use of DNA as an assurance of the quality of its meat products.

Tyson’s Open Prairie brand sources animals that are raised without hormones or antibiotics.  Small samples the size of one grain of rice will be extracted from cattle carcasses at processing facilities.  IdentiGEN, DNA markers will be used to identify individual animals.  Additional applications for DNA tracking may be developed and used once the cost of the new technology decreases.

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