AHPA reports supply chain disruptions to USDA amid mounting industry concerns
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14 Apr 2020 --- Avoiding supply chain disruptions is fast becoming an industry priority amid the still unraveling COVID-19 outbreak. The American Herbal Products Association (AHPA) has reported a host of supply chain issues within the herbal ingredients sphere to the US Department of Agriculture (USDA). These were submitted by AHPA member companies and refer to shortages and delivery disruptions for a variety of ingredients, supplies and services. In light of this, AHPA is collecting supply chain data to inform industry and government, and is inviting companies to complete a relevant survey to aid with the endeavor.
The move seeks to better inform regulators and lawmakers, as well as industry, on the supply chain disruptions. This will allow fast action to be taken in order to eliminate adverse economic outcomes. The herbal industry advocate invites companies to report any export or import delays, ingredient supply shortages, or other disruptions, which it will then compile and share with the appropriate regulatory bodies.
AHPA report focus
The herbal industry organization has already noted several data pointing to disruptions in its USDA report. Issues reported to the USDA largely fall into the following categories of botanical raw materials, proprietary ingredients, vitamins and dietary ingredients, manufacturing supplies and packaging materials.
The AHPA submission spotlights challenges surrounding botanical raw materials consisting of unprocessed plants and plant extracts from Brazil, Bulgaria, Canada, China, France, India, Indonesia, Italy, Mexico and Taiwan. Identified examples of shortages and hurdles include agave, arnica, bilberry, boswellia, cilantro, echinacea, elderberry, gentian, hawthorn, linden and lomatium, passionflower, pomegranate, reishi and turmeric. Food ingredients are also identified, including lentils and rice.
Moreover, proprietary ingredients including botanical extracts from Italy and New Zealand, are also presenting supply chain difficulties. Letter vitamins and other dietary ingredients from China and India, including CoQ10, ascorbic acid and calcium D glucarate, as well as “letter vitamins” generally described, are also in the list.
In addition, the report notes disruption in packaging materials and supplies from China and Mexico, including glass and plastic bottles, and bottle closures. Some respondents also report supply disruptions of these materials, even from US suppliers.
AHPA reports disruptions to the USDA in botanical raw materials, proprietary ingredients, vitamins and dietary ingredients, manufacturing supplies and packaging materials.Lastly, services are also impacted by the situation, including issues with availability of contract manufacturer and bottling operations, at least regionally in some parts of the US.
Ethanol shortage
AHPA’s report also outlines shortages and delays in supplies for manufacturing, including a disruption to the supply of organic alcohol (ethanol), an essential ingredient used as a solvent in botanical extraction operations. No specific source country was identified but the primary supply for most AHPA members is reportedly domestic.
“If there is one product that is falling short and we see some disruption it is ethanol, simply because primarily in Europe, a lot of distilleries are being asked to produce gels and hand sanitizers. We use ethanol in some of our production processes to also make some lactic acid derivatives. But while we have been facing some shortages, we have been able to navigate through that,” Corbion’s CEO, Olivier Rigaud tells NutritionInsight’s sister publication The World of Food Ingredients.
The AHPA report also mentions hurdles in supplies for sanitation procedures, including isopropyl alcohol, nitrile gloves and face masks. Source countries identified include China, and again, even US suppliers of these materials.
Industry highlights disruptions
Last week, NutritionInsight reported on how the vitamins industries are responding to the supply chain hurdles caused by the coronavirus situation. In regards to this, Andy Bragg, Business Manager of Lehvoss Nutrition explains that demand increased in requests for certain ingredients. However, main supply chain issues are the transport infrastructures given various lockdown and restrictive measures, as well as the lack of workers in many countries.
Shipping costs are also increasing and that giving priority to medical needs has led to some delays, according to Ettore Giacobbe, Product Development Manager of Lehvoss.
The company is also experiencing shortages of immunity-related ingredients, including vitamin C. Bragg also notes that there is increased demand around vitamin C, especially after press coverage on high dose administration as a potential treatment method for COVID-19 in the US. Other herbal ingredients like echinacea and astragalus, as well as vitamin D and some minerals have all become more requested by customers, he adds.
In the vitamin C space, Nic Dam, Prinova Group’s Managing Director, previously told NutritionInsight that within China, the COVID-19 situation caused certain supply chain disruptions. “This is around the transportation of goods as we saw delayed shipments from several producers. Several weeks of delays had a serious impact on supply around the world. At the same time, end-users wanted to increase their stock levels to give them a buffer in case of further delays and this is what caused the first spike in demand,” states Dam.
Vitamin C has long been a popular vitamin linked to immunity, with Innova Market Insights data pointing to vitamin C being included in over half of NPD in 2018 that featured vitamins.
Edited by Kristiana Lalou
