Category Archives: Natural Catastrophes

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Hurricane Flooding Affecting Agricultural Supply Chains

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The trillions of gallons of water dumped by Hurricane Harvey on Texas and Louisiana and Hurricane Irma in Florida have created major problems for agricultural producers in these states. The damage is expected to affect supply chains in for businesses including grocery chains, restaurants and livestock ranches as massive rainfall and flooding have interrupted harvesting cycles for crops like wheat, rice, corn and citrus fruits.

Short-term economic losses are already being estimated, while concerns persist about the storm’s long-term effect on crops, soil and machinery.

According to the United States Department of Agriculture’s (USDA) Economic Research Service, Louisiana and Texas are respectively the third and fifth-largest rice producers in the United States. While Louisiana planted almost 400,000 acres of rice this year, LSU AgCenter extension rice specialist Dustin Harrell said a recent survey revealed that only about 10,000 acres of first-crop rice remains left for harvest in south Louisiana. “The big unknown at the moment is the ratoon rice in that area,” Harrell said.

Ratoon rice is a staple for many companies which grows from the remnants of what has already been harvested. “[It’s] very important economically and it, too, can be lost if the ratoon stubble remains submerged for several days.”

For Texas growers, some experts estimate that a substantial portion of their rice crop is completely unusable. “I estimate 80% of the Texas rice crop (170,000 acres) was cut before the storm hit and the remainder is totally lost. Rain normally makes grain, but this is so much more than rain,” said Dwight Roberts, president and CEO of the U.S. Rice Producers Association located in Houston. “[As of Aug. 29] it’s hard to really even know the condition of harvested rice. We’ve got broken communication, no electricity for some areas, and flooded storage in places. There are so many unknowns.”

In a statement issued by the Food and Drug Administration (FDA) on Sept. 14, commissioner Scott Gottlieb acknowledged that rice harvested following Harvey faces risk of contamination. He said steps are being taken to prevent affected rice from being passed on to consumers or animals that could consume these crops, since broken grain can be used for pet food. He made particular mention of the Texas rice crop, saying that so far the agency had “not issued a ban on rice or any other food crops,” adding that rice grown in normal conditions and rice that has not been exposed to contaminated floodwaters may enter commerce. “Also, rice and other crops that were harvested and stored safely before storms hit should not be considered impacted by these events,” he said. 

The storms affected another key commodity: citrus fruits. The USDA ranks Florida and Texas as the respective first- and third-largest producers of oranges and grapefruits, and the storms took a bite out of their crops as well. Florida’s grapefruit harvest was already estimated to be the lowest in 50 years, with growers and experts expecting near-35% percent losses in the top-producing districts. According to USA Today, specific varieties of oranges like navel and Valencia might see a 25-to-35% loss.

“That puts every grower on the East Coast in red ink” for this year, said Andy Taylor, senior vice president and chief financial officer for the world’s largest grapefruit processer, Vero Beach-based Peace River Citrus Products Inc. “Efforts to salvage some of that and get it processed into juice,” however, are unlikely to save even 10% of the fruit dropped, Taylor added.

During his press conference, Gottlieb said the FDA has dispatched experts to work with state regulators and directly with producers to address questions and concerns about mold and other contaminants.

He also recognized the need to get boots on the ground in order to assess the quality of the crops, “or else crops that might be safe—because they were not exposed to contaminated floodwaters—could age past their point of use.”

The FDA distributed resource guides in reaction to the storms. For more general information on evaluating the safety of food and animal food crops exposed to flood waters, visit here. A QA on crops harvested from flooded fields intended for animal food can be found here.

Beware of Fire Ants During Hurricane Cleanup

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While Texas, Florida and other states dry out from the trillions of gallons of water dumped by Hurricanes Harvey and Irene, there is much to be done and many hazards to watch out for when clearing trees and removing soggy remains from homes and offices.

While cleaning up outdoors, people should keep in mind that many animals are also displaced. These include 20 species of snakes (in Texas), alligators, deer and raccoons, according to the Washington Post.

What they may not be on the lookout for, however, are floating rafts of fire ants, which have a painful, itchy sting, Smithsonian reported. The ants, which send some 25,000 people to the hospital each year, can be found in a number of states, including Texas, Florida, Alabama, Mississippi, and California. They have a way of coping with large amounts of water by clinging to each other and forming floating rafts that can contain 500,000 or more fire ants.
Photo: ScienceNews

These rafts are actually floating colonies protecting the queen, which is in the middle. They can survive for weeks until they find a dry surface—any dry surface.

According to Popular Science:

Normal ants bite and then spray acid on the new wound, but fire ants are much worse. They bite, hold on, and inject a venom containing 46 different proteins, including poisons that sometimes affect the nervous system. They also have a more brutal attack pattern than many social insects. If you knock over a beehive, not all the bees will come after you—most colonies have a few dedicated warriors to protect the clan. When fire ants are disturbed, however, they all attack. About one in every hundred people will have a full-body response to the stings, such as an allergic reaction or even hallucinations.

As Eric Chaney at the Weather Channel warns, the ants can remain a problem even after the floodwaters recede and it is easy to accidently happen upon them, hunkered down amidst debris piles. According to the Imported Fire Ant Research and Management Project, “Laundry piles are convenient places that present lots of tunnels for the ants. They may be attracted to moisture or food residue or oils on soiled clothing. Often, reports of ants in laundry occur following a flood.”

Those venturing into flood waters are advised to wear rubber boots, cuffed gloves and protective rain gear to keep ants off their skin. Popular Science recommends spraying ant rafts with their kryptonite—soapy water—which can cause them to sink.

Post-Harvey Lessons For Chemical Plant Managers

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One of the many hazards exposed by Hurricane Harvey occurred in Crosby, Texas, when the Arkema chemical plant suffered fires and small explosions on Aug. 31 and Sept. 1. Floodwaters caused the fires by penetrating the facility and shutting down the cooling systems designed to stabilize 500,000 pounds of highly flammable materials inside. This ultimately caused a mandatory evacuation for all residents within a 1.5-mile radius of the plant. Local news outlets reported that Arkema had no plan in place for six feet of flooding and its last risk assessment was submitted in 2013.

With Hurricane Irma being tracked at 175 miles per hour in the Caribbean, it is possible that chemical plants in the path of destruction—including Florida and the southeastern United States—may face a similar scenario. Regardless of the location of your plant, here are some tips that can help reduce potential business interruption and physical injury during a major natural disaster:

Update your risk assessment. Use Harvey as a catalyst to revisit your risk assessment, especially since new information has emerged about the potential for natural hazards or disasters that can trigger a chemical accident. As recently discussed, the best assessments do more than just feature a column of checked boxes to achieve an organization’s objectives and mitigate business interruption.

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“They prioritize top risks, assign risk ownership, and most critically, integrate risk management and accountability into front line business decision-making,” says Dean Simone, PWC’s U.

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S., Asia-Pacific, and Americas Cluster Risk Assurance Leader.

Submit the assessment to the EPA or other government-appointed body, like your state’s Commission on Environmental Quality. Your facility needs to be able to withstand significant damage to prevent further incidents and public harm. The feedback will hopefully provide some useful criticism to ensure public safety and business continuity.

According to ABC’s Houston affiliate:

In at least one of Arkema’s hazard mitigation plans filed with the federal government, plant officials acknowledged that flooding is a risk. The site sits in a FEMA “high-risk” floodplain that has flooded in the past, leading to a power failure. That time, the site only had six inches of water, a former plant worker said.

It was later revealed in an internal company timeline of events that Arkema did not move temperature-sensitive chemicals via refrigerated trucks and instead banked on its two backup systems, which failed. It seems certain that Arkema will have to consider at least six feet of floodwater when it revises its plan.

Institute an emergency plant management system. This may be included in your company’s risk assessment, and it is important that your employees also know the protocol when it comes to disaster prevention. This includes establishing the lines of authority and communication while on-site and during a catastrophe. OSHA provides guidance for chemical plant management in the event of a mass disaster.

Develop public-facing communications plans. Your communications team, led by an executive officer, should have advisory plans in place in anticipation of, during and following an emergency. The good news is that you don’t have to draft them from scratch. The Centers for Disease Control and Prevention (CDC) offers communications worksheets, templates and guides dedicated to water, sanitation and hygiene-related emergencies and outbreaks. You can customize these documents to reflect your organization’s capabilities and to alert nearby residents and businesses.

Be sure to issue advisories through all possible outlets, including social media. One thing Arkema did correctly was send press releases, incident statements and alerts via Twitter in addition to traditional outlets in order to keep as many people informed as possible.

Communicate with local authorities and emergency workers. All energy plants impact their local communities, surrounding areas and ecosystems. Your company’s hazard plans should be communicated to local fire and police departments and hospitals. This ensures that emergency workers know the potential dangers your plant faces in the event of a disaster and the steps you plan to take to mitigate them.

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Ensuring Your Company’s Disaster Relief Donations Are Well Received

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With Hurricane Harvey’s effects being felt in Texas and Louisiana for some time to come, businesses may want to help victims by making corporate donations. Corporate decision-makers should carefully consider ways to contribute, since some recent post-disaster efforts have not helped as intended.

Depending on your industry and your company’s size, you may have access to supplies or a service that will be useful to victims and aid workers. The New York Times recently listed the local organizations that will accept certain donations. Your efforts can be coordinated with an accredited organization or the local government to determine whether your donations qualify.

Risk management and insurance professionals who would like to help Harvey victims directly can visit the Insurance Industry Charitable Foundation’s (IICF) IICF Hurricane Harvey Disaster Relief Fund. The fund was established in response to a surge of inquiries from its community as to how it can help. The fund has already received $80,000 in commitments, and the IICF will forward all contributions to local nonprofits assisting victims in the area, including the American Red Cross and specifically its Hurricane Harvey disaster fund.

During catastrophes, experts generally encourage these sorts of finance-based efforts in lieu of sending tangible items without a partnership with a local non-profit. Many organizations suggest that it is best to let the aid workers on the ground use their allocated funds to get necessity items like water, toiletries and food. In its Tips For Giving In Times Of Crisis page, CharityNavigator.org dissuades companies from sending supplies ad hoc:

“[This] type of philanthropy is simply not practical or efficient. Even if mail could get to an impacted region, no one is set up to receive these goods, much less organize and distribute them to the victims.”

It has been well documented that donations of tangible items – especially used ones – can cause unintended problems. Some never reach those in need and eventually wind up in landfills; and certain used clothes, like old shoes and Halloween costumes, might insult survivors.

According to Kansas disaster response coordinator Hollie Tapley, about 75% of donated goods will go to waste despite the donors’ good intentions. “Money is the best way because we know culturally what people need,” Tapley told Kansas State Network before Harvey hit Texas. “One group needs something totally different than another group.”

Blood donations are always in high demand following a disaster and national blood banks sometimes hold emergency drives to allocate blood to the affected areas, which might not have the resources to hold their own. If you are determined to reach the affected area, confirm those details with the donation center’s organizer. Bloodsource’s donation locations can be found on the group’s website. The Red Cross also provides information for potential donors online.