I thought this was a fantastic read! In particular, the section about how the author's father rejiggered the supply chain to import oats from Canada was a perfect example of hacking to get a new solution, e.g.:
> 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.
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.
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.
I thought this was a fantastic read! In particular, the section about how the author's father rejiggered the supply chain to import oats from Canada was a perfect example of hacking to get a new solution, e.g.:
> 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.
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
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.