Food supply chain disruptions during Pandemic, news by Hebei Longsheng
| Food supply disruptions during COVID-19 – three issues to watch The global food supply chain runs smoothly most of the time, ensuring the right products get to the right places in a timely manner. The COVID-19 pandemic has caused disruptions – this report considers three issues. First, food protectionism has emerged though it is not as bad as that seen in medical supplies. The World Bank has identified 40 measures restricting food exports since the start of the year, though around half have already been withdrawn. Grain export restrictions in Ukraine and the Eurasian Economic Union could disrupt 17.2% of global grain supplies based on 2018 data, though only a subset of products are affected so far. Grain stockpiling by China may price poorer countries out of the market. Second, physical disruptions to supply chains are becoming widespread. Meatpacking has been particularly affected due to the labor-intensive processes involved. Brazil’s beef exports have been robust despite plant closures with a 0.4% rise in March compared to a year earlier, though shipments by JBS and Minerva have slumped. Shortages of farm hands, fertilizer flows and logistics infrastructure are also challenges. Finally, regulatory risks are acting as a force multiplier for COVID-19 disruptions. The U.S.-China trade deal should lead to prioritized flows from the U.S. to China, but those have yet to occur for many products. U.S. seaborne pork exports have continued to expand with a 189.8% rise in April compared to a year earlier. There’s been a divergence in the performance of exporters with WH Group’s exports having slipped 8.7% while Tyson’s surged 45.6% higher. A collapse of the phase 1 trade deal could lead to further disruptions. By Hebei Longsheng Metals & Minerals Co,. Ltd. |
