In June 2022, Foster Farms obtained an emergency order from the Federal Service Transportation Board to maintain deliveries of corn to Company feed mills by Union Pacific Railroad.
Following deterioration in frequency of deliveries, Foster Farms filed a petition for emergency service granted by the Service Transportation Board on December 30th. The Board directed Union Pacific Railroad to satisfy commitments to Foster Farms and to provide status updates.
The need for an integrator to resort to emergency applications to a federal regulatory agency twice within six months suggests the vulnerability of Foster Farms with respect to corn. They may wish to review their long-term needs and invest capital in storage capacity to maintain operations in the event of an interruption in supply. This could occur during a prolonged strike, weather event or other calamity beyond the immediate control of a carrier.