The Covid-19 pandemic introduced several unexpected food supply chain disruptions creating several challenges. In Food Supply Chains and Covid-19, Impacts is a lot while searching in the market you can see it. What is exceptional is the speed with which supply chain actors have overcome the covid-19 effects of food supply chain and ensured the continuity of food availability. Although, some bottlenecks remain with several new disruptions as Covid-19 spreads over the world. The impact of Covid-19 on food supply chain has triggered the rapid response of underscored international trading environments, and firms can tap into new sources of supply. Policymakers have also avoided the mistakes made during the 2007-08 food price crisis. They have taken a range of other steps to ensure consistent supply. This summarizes the present condition of the extent of the impact of Covid-19 on the supply chain today with a few remaining bottlenecks.
Focus is on Food Supply Chains and Covid-19 Impacts
So the pointers are:
What is Food Supply Chain
The food supply chain is the process by which food from the farms ends up on our tables. This process includes production, processing, distribution, consumption, and disposal. The steps of the supply chain require human or natural resources.
Due to the Covid-19 pandemic, the impact on the food supply chain has been severe. The lack of human resources has caused several disruptions in the chain, causing a reduction in production or distribution.
Moving on, we are going to talk about OECD food supply chains and covid-19 impacts and policy lessons.
Unexpected stress on Food Supply Chains and Covid-19 Impacts
Covid-19 has caused disruption in all food supply segments, affecting production, processing, transportation, and demand. Not all sectors and products have had the same impact, but various products have experienced disruptions at several supply chain stages.
Farm Production on Food Supply Chains and Covid-19 Impacts
Farm production has been affected by restrictions for input in terms of labor. Some farm sectors are dependent on seasonal labor for fruits and vegetables compared to the typical labor for rice or cereals. The limitation of people’s mobility reduced the availability of seasonal workers for planting and harvesting in the fruits and vegetable sector of the world.
Besides farm labor, seed, pesticide, and fertilizer supply are significant parts of the food supply chain. While the seed requirement has faced no shortage, there is a risk of a reduced supply of pesticides and fertilizers as it is highly globalized. The travel restrictions for Covid-19 has restricted the production and supply of global fertilizers for the sowing seasons of April and May.
Covid-19 has heavily disrupted the food processing industry with the shortage of industrial labor. Due to social distancing and lockdown rules to reduce sickness and the spread of the virus, people are reluctant to work in food processing factories. Moreover, in packing factories for fruits and vegetables, maintaining social distancing for security can reduce operational efficiency. Reduced operational efficiency while maintaining adequate protection in processing plants leads to reduced production.
Meat processing plants are a cluster for Covid-19. In these plants, employees work in close proximity making it challenging to maintain regulated distances facilitating the spread of the virus. Meat processing tends to be more intensive compared to other processing plants because of the labor-intensive nature of operations. Several meat processing plants have shut down or are working at reduced capacity due to such predicaments.
On the contrary, grain and cereal handling and processing have continued without disruption as it is highly automated and requires less labor.
The bottleneck of transportation and logistics have reduced the movement of products across the supply chain. Agricultural and food products transported worldwide use three major modes of transport: ships, road transport in containers, or air freights.
The impact of Covid-19 on food supply chain transportation varies considerably depending on the mode of transport. There have been no significant disruptions in bulk shipments, but air freights have faced many difficulties. The disruption was due to the decline of passenger flights, which account for the majority of food supply transportation.
The quarantine measures and delays in border inspection have affected the food supply for fruits and vegetables. On the contrary, the cereal supplies have faced no significant disruptions as bulk transportation is less affected as cereals can be shipped and distributed with minimal labor.
The food supply chain disruption due to Covid-19 was less due to production than the labor involved. The disturbances in processing created a surplus for producers and a shortage for consumers. For some specific products, the demands have also decreased, leading to temporary oversupply.
Shoppers have sometimes experienced empty shelves in supermarkets. This happened during the early days of Covid-19 while the food supply chain was adjusting to the sudden changes. The risk to food security results from the effects of Covid-19 caused due to the disruptions in the food supply chain. In developing countries, the safety measures are under-0developed, which can lead to a severe increase in poverty and hunger. In developed countries, the vulnerability stands for the elderly and chronically ill, where Covid-19 has laid pre-existing gaps in the social protection system.
Point: Food Supply Chains and Covid-19 Impacts
While the food supply chain has recovered from all the problems and impacts of Covid-19, some bottlenecks remain.
- Firstly, the availability of labor inputs for farming, especially for harvesting fruits and vegetables, is a significant problem.
- Secondly, the shutting down of meat processing plants have reduced the availability of meat in the market.
- Thirdly, the ongoing disruption of air freights affect the transportation of high-value perishable products like fruits and vegetables.
The issues related to these bottlenecks are common and are difficult to overcome in the short run. However, the most significant risk to the food supply chain is not food availability but the consumers’ access to food.
While the impact of Covid-19 on food supply chains are still unraveling, businesses have learned several lessons. Open markets have been an essential aspect in smooth distribution while ensuring transportation to wherever necessary.
Diversifying supply sources had allowed firms to adapt to the rapidly changing market when the pandemic disrupted sources like transportation. Food Supply Chains and Covid-19 Impacts in every sector. Meeting the needs of vulnerable groups with proper food access while ensuring targeted and flexible safety measures were the main objective of the food supply chain adaptations.