Impact of COVID-19 on The International Trade of Food Industry
Overall, trade is estimated to take a blow of 13-32% as an aftereffect of the world pandemic. Since every business was put in nosedive by the health catastrophe, it will have adverse effects on commerce.
What a year to be living in this world! Our generation or the former never observed a pandemic of this intensity. We are gliding through it and hopefully will survive it. The experts are saying International trade will face the most significant impact of modern history due to COVID-19.
Overall, trade is estimated to take a blow of 13-32% as an aftereffect of the world pandemic. Since every business was put in nosedive by the health catastrophe, it will have adverse effects on commerce. It is essential to keep in mind the fact that, Global economy be not in its best shape before the lockdowns began. People are comparing the current crisis with the worldwide financial crisis of 2008-09, and many are worried that the present situation might be even weaker.
The food industry is near destruction because many countries have banned specific food items to export because of COVID19. These restrictions deem not to be lifted until the world finds a cure for the virus. Therefore, the near future of the food industry is unstable. Russia, for instance, has proposed to forfeit grain exports. Although the officials are claiming there is no food shortage as of now, there is fuss in-the-air. If this uncertainty prevails and Governments start to panic, it could result in more export stoppages of food trade. It could cause another global crisis amid an ongoing pandemic. If countries stop food exports completely, the international food markets will be scarce.
The span of this pandemic had spread in 190 countries. A crisis of this multitude can result in abrupt manners for the traders around the globe, and no one can judge what precisely the loss is going to be. The disastrous day has already dawned on the global oil industry, what more is to come? Is international trade going to hit its rock bottom? The blow to international trade disrupts the airline industry, Freight businesses, productions in China, and other areas.
World Governments had put all countries in lockdown to avoid the spread of disease. This self-quarantine has resulted in the closure of the hotel and restaurant industry as well as food production, shipment. The related industries, like beverages and beer production businesses, have been affected. Even if restaurants open in the name of home-delivery or take-away, the burgeoning rise of social-distancing awareness has kept the customers from hanging out. Panic buying had its fair share of negative impact in the bargain. Impulsive buying disturbed the food supply chain. In some areas, sellers and vendors increased their prices far above the reach of people. These specific dangers have put the Food Industry on the step back.
“This self-quarantine has resulted in the closure of the hotel and restaurant industry as well as food production, shipment. The related industries, like beverages and beer production businesses, have been affected.”
The population of the world hinges on the International Trade and Food Industries for the supplies and day-to- day livelihood. Business people and Trade industries must support their Governments and come up with a plan to avoid the situation. They must ensure there are no shortages around the world, as no country can deal with the crisis on its own. All the nations around the world need to work together as a team.
Source : Remarks by DG Azevêdo