Tuesday, 7 April 2020

Global Agriculture at the time of Covid-19

Global Agriculture at the time of Covid-19

Since the World Health Organization has declared the Covid-19 a ‘pandemic’ on 11 March 2020, many affected countries have taken up protectionist measures to control the further spread of the disease. Almost one-third of the global population is under some of restrictions or ‘lockdown’ to ensure social distancing. As announced by the United Nation’s Food and Agriculture Organization (FAO), such protectionist measures by the national governments to handle the coronavirus crisis could provoke food shortages around the world.



According to Global Market Estimates, despite good harvests, with shortage of field laborers and a move towards protectionism – tariffs and export bans, problems are anticipated to appear. Kazakhstan, for example, has banned exports of wheat flour, of which it is one of the world’s largest suppliers. It has also imposed restrictions on buckwheat and vegetables including onions, carrots and potatoes. Similarly, Vietnam which is the world’s third biggest rice exporter has temporarily suspended rice export contracts. The world’s biggest wheat exporter, Russia, may also threaten to restrict exports and the position of the United States is precarious. FAO anticipated that the trade barriers would be creating further volatility and lead to a food crisis.

Although the supply of food is functioning well in most countries presently, issues could start and intensify over the following two months as key fruit and vegetables come into season. Such produces have short ripening times and are highly perishable. They also need skilled pickers or workers to work quickly at the right time. Due to the imposition of lockdowns in major countries across the world, engaging seasonal workers would become impossible unless immediate measures are taken to ensure vital workers can still move around, all the while preventing the virus from spreading. Then there is the issue with logistics and increased food prices. With a sinking currency and high level of imports, big economies are also likely to see food price rises unless the governments takes action or retailers absorb some of the costs. FAO anticipated that this would most likely be the case with the UK.

During this crisis, individuals can also play an important role. One has to avoid panic buying and hoarding of food, and reducing food waste. Buying too much fresh farm produce which is perishable and can go off before it can be eaten will just augment food supply problems. In some African countries, like Ghana, the situation has been made worse by soaring food prices. Countries with pre-existing hunger problems would be worst affected. FAO warned that if the number of COVID-19 cases increase rapidly in the 53 countries that are home to more than 113 million people who already face severe food insecurity, a major crisis would be looming. The pandemic could prove to be particularly catastrophic in those areas that are already hit by other food-related crises, like the countries in sub-Saharan Africa that are anyway dealing with vast swarms of desert locusts which devour crops and threaten food security.
Moreover, smallholder farmers across the globe are particularly vulnerable to the fallout from the pandemic as they might be restricted to access their land during quarantine or have access to markets. In the United States, farmers would be facing uncertainties regarding bringing in seasonal workers from Mexico to help get crops from the field and pick ripened fruits from the orchards.
With restaurants closed and educational institutions shut down, demand for food produce is also witnessing a shortage. With the border closures and disruptions to global trade are already creating logistical bottlenecks and that quarantines and shelter-in-place ordinances are keeping farmers and food processors from processing agricultural products, particularly fruits and vegetables. Shortages of farming inputs like fertilizers and veterinary medicines can further impact food production. Harvesting for the upcoming season could be delayed by two to three weeks. These factors could cause disruptions in the food supply chains in the coming months.

For latest updates, visit our blog: https://www.globalmarketestimates.com/blog-posts.php

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