Food Supply Chains and Covid-19: Impacts and Policy Lessons
2020
Summary Covid-19 placed unprecedented stresses on food supply chains Farms faced bottlenecks for some inputs, notably seasonal labour Processing was disrupted by labour shortages and shutdowns, especially in meat processing Air freight, important for fruits and vegetables, was severely disrupted Demand from restaurants and food service collapsed, while retail food demand surged Yet supply chains in the developed world have been remarkably resilient to date Store shelves were replenished as stockpiling behaviour subsided and as supply chain actors expanded operating hours, increased staff, simplified the product range and found alternative suppliers This rapid recovery was facilitated by policy decisions to reduce border waiting times, to streamline certification procedures and to relax regulations on trade in food Importantly, policymakers have so far mostly avoided a repeat of the mistakes of the 2007?2008 food price crisis, which was greatly exacerbated by export bans Some bottlenecks remain, and there may be new supply risks as Covid-19 spreads in Latin America Overall, the biggest risk to food security is not food availability, but consumers? loss of income Safety nets and food assistance are essential to avoid an increase in hunger, especially in developing countries
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