Commodity Shortages

Reasons

Commodity shortages are quite common during a crisis. There are several reasons for shortages, including a decrease in production resulting from a lack of materials or manpower, pestilence in the food supply, a lack of transportation assets or routes, or a divergence of supplies to a crisis area. Divergence of supplies to areas stricken by a crisis or affected by military action often reduces the amount of commodities available for the public. Since commodities may be very limited in many areas, this divergence will severely impact the civilian population. Storage concerns are also a major concern. Many nongovernmental organizations (NGOs) provide commodities, especially food, during crises. However, government programs also provide food supplies and other commodities in partnership with NGOs. The military often works with these organizations to ensure that emergency transportation assets are available whenever private resources may not be readily available.

A decrease in production secondary to a lack of raw materials or manpower often occurs during extraordinary events. The most common reasons for a lack of raw materials include reduced production, shuttering production facilities due to crisis, overusing raw materials, or reduced ability to obtain raw materials to produce commodities. Since finished products such as generators, vehicles, or toilet paper cannot be produced without parts or raw materials, production facilities have no choice but to cease production whenever they are unable to obtain raw materials.

Some raw materials such as platinum are so hard to obtain that the world supply is often reduced in an effort to prevent large shortages of the commodity. Other commodities such as medications used to fight cancer or control diabetes are in short supply because production facilities have lost patents, thereby reducing profit margins. These facilities often choose to cease production rather than lose profits. This leaves suppliers trying to find other ways to obtain commodities, which may not be possible. Moreover, the price of the remaining commodities is often so high that only the wealthy can afford to purchase them. The availability of certain commodities may also be secondary to geographical location of those seeking the commodity. For instance, it may be quite easy to obtain a petroleum product, such as diesel, in areas near refineries or where pipelines are readily available, but it may be hard to obtain in areas that require extended shipping methods. Commodity shortages are also common during work stoppages.

Pestilence in the food supply may reduce the availability of fruits, vegetables, and grains. Although chemicals are often used to reduce attacks by these pests, it is quite common for many areas of the world to experience infestations. Farmers in underdeveloped countries do not have access to a ready supply of pesticides or the equipment to deliver them; therefore, these areas of the world are accustomed to infestations. However, many developed countries also experience their own infestations. For instance, both China and Russia have experienced attacks by large swarms of locusts, thereby reducing their food supply. Countries then have to allocate funds to purchase food supplies from countries such as the United States or Brazil.

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