My Dad Helped Build North America's Oat Supply Chain: Can It Be Remade?

46 points - last Tuesday at 2:00 PM

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hn_throwaway_99 today at 6:01 PM
I thought this was a fantastic read! In a time when I get nauseated by all the AI posts, the section about how the author's father rejiggered the supply chain to import oats from Canada was an excellent example of hacking to get a better solution and perfect content for Hacker News IMO:

> Connecting Canada’s oat supply with U.S. mills was where my dad entered the story.

> In a business that measured volume in millions of tons, squeezing even a few cents out of the supply chain could be extremely profitable. My dad, a gifted mechanic, excelled at finding creative ways to move oats cheaper than the other guy. For example, Canadian rail lines could deliver oats cheaply to Thunder Bay, Ontario, but rail freight across the border into the U.S. was expensive. My dad realized that instead of paying the high rail rates past Thunder Bay, oats could instead be loaded into a Great Lakes freighter designed to haul iron ore pellets (like the ill-fated Edmund Fitzgerald). Lake freighters typically unloaded their cargo in Thunder Bay and had to sail empty to pick up more iron ore on the U.S. side of the border. If you could fill them with oats in Thunder Bay, deliver the oats to Duluth, Minnesota, and then load the oats on U.S. rail lines, you could substantially cut shipping costs.

> The problem was that Duluth’s elevators were built as a one-way spigot to ship grain out. Moving grain from a freighter into the elevator required a McGyver-esque solution. The grain company cut a hole in the side of the massive elevator bin so the lake freighters could pour oats into them, reversing the flow of grain from export to import. These kinds of fixes were how my dad made his living, and it’s how a supply chain was built.

moomin today at 6:16 PM
This is one of those little things I’ve had trouble putting my finger on: the US eats surprisingly few oats. The U.K. eats more than three times as much on average. Which is probably one of the reasons I find US cuisine slightly uncanny valley.

Southern Europe doesn’t really consume much either, but most US food is closer to Northern European food.

danans today at 6:03 PM
> Demand for oats increased in the 1980s when researchers announced that beta glucan, a type of fiber in oats, can lower cholesterol.

I'm skeptical that this was a factor, because in total only 5% of oats are used for human consumption. 95% is used for animal feed: https://oklahoma.agclassroom.org/resources/agricultural-fact...

I doubt it was that much different back then. This relates to the "Oat Mafia" that the article responds to:

https://www.nature.org/en-us/what-we-do/our-priorities/provi...

While I support their efforts to shift their industry toward human-consumption-grade vs animal feed-grade oats and more sustainable agricultural practices, they will have to also learn how to shape tastes (literally). I'm not sure that Americans are willing to shift their consumption from oat-fed animals toward oat-derived products. Realistically, they should plan on a generational scale project.

As this article indicates, the oat-consumption health fad has come and gone before (in the 1980s)- but it didn't make a significant shift in Americans' meat consumption. Arguably the only thing that will is higher prices of meat - which are now here, but for different reasons (drought, war-spiked energy and fertilizer costs, and now screw-worm).

3eb7988a1663 today at 4:57 PM
USDA[0] says that the US produces 1 million metric tons of oats per year, or 4% of global production. Sure, that is not the best, but clearly still in the game.

[0] https://www.fas.usda.gov/data/production/0452000

bell-cot last Tuesday at 2:19 PM
In many ways, it's a story about far more than just oats.

US Ag policy is so, so screwed up. But with more entrenched interests than the US has Congressmen, and probably 10X that number of full-time lobbyists - good luck trying to fix it.