Impact of COVID-19 On The Food Supply Chain
Impact of COVID-19 On The Food Supply Chain
Impact of COVID-19 On The Food Supply Chain
doi:10.1093/fqsafe/fyaa024
Review
Advance Access publication 24 August 2020
Review
Abstract
A pandemic is not a new event encountered in the history of humanity because mankind has
faced various pandemics in history. The common point of pandemics is their serious negative
effects on the global economy. Considering the food supply chain, one of the most important
sectors of the economy, it has been seen that COVID-19 has an impact on the whole process
from the field to the consumer. In the light of recent challenges in food supply chain, there
is now considerable concern about food production, processing, distribution, and demand.
COVID-19 resulted in the movement restrictions of workers, changes in demand of consumers,
closure of food production facilities, restricted food trade policies, and financial pressures in
food supply chain. Therefore, governments should facilitate the movement of workers and
agri-food products. In addition, small farmers or vulnerable people should be supported
financially. Facilities should change the working conditions and maintain the health and safety
of employees by altering safety measures. Food protectionist policies should be avoided to
prevent an increase in food prices. In conclusion, each country must realize the severity of the
situation and sometimes should tighten or loosen the measures according to the spread of
the pandemic. The supply chain also should be flexible enough to respond to the challenges in
the food supply chain. The purpose of this review is to evaluate the impact of COVID-19 on the
agriculture and food sector and to summarize the recommendations required to reduce and
control the effect of the pandemic.
Introduction (H3N2), and 2009 Pandemic flu (H1N1), that resulted in the human
deaths of around 50 million, 1.5 million, 1 million, and 300 000, re-
As the COVID-19 disease spread rapidly to six continents by the
spectively (Liu et al., 2020). WHO indicated that this outbreak is not
novel coronavirus SARS-nCoV-2, many countries around the world
have declared state of health emergency. On 11 March 2020, the just a public health crisis, but it is a crisis that will touch every sector.
World Health Organization (WHO) declared the rapidly spreading Therefore, every sector and every individual should be involved in
disease as a pandemic and called on countries to plan preparatory this struggle (WHO, 2020c). As of 5 August 2020, the number of
and response actions in line with the Global Strategic Preparedness cases per 1 million population is given for different regions as fol-
and Response Plan (WHO, 2020a; Vasavada, 2020). WHO ex- lows: 9 613.03 in Americas, 3 694.43 in Europe, 1 136.41 in South-
plained that a pandemic caused by a coronavirus has not been seen East Asia, 2 167.25 in Eastern Mediterranean, 742.75 in Africa, and
before, and this disease is the first pandemic caused by the corona- 176.36 in Western Pacific region. The global total of confirmed cases
virus. COVID-19 is the fifth pandemic, following 1918 influenza has reached to 17 528. 223 per 1 million population and 687.64 per
virus (H1N1), 1957 influenza virus (H2N2), 1968 influenza virus 1 million population for corresponding deaths (WHO, 2020b).
© The Author(s) 2020. Published by Oxford University Press on behalf of Zhejiang University Press.
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168 S. Aday and M. S. Aday, 2020, Vol. 4, No. 4
The ‘Strategic preparedness and response plan’ by WHO includes the supply management strategies is also important to meet the con-
the health measures that all countries had to prepare for and respond sumer demands (De Sousa Jabbour et al., 2020). Maintaining the
to this pandemic. This plan covers what we have learned about the flow of food and commodities throughout the supply chain should
virus so far and aims to transform this information into strategic be ensured with the contribution of all stakeholders. Ensuring the
action that can guide all national and international partners while confidence of consumers is also essential for food safety and security
developing national and regional operational plans. According to (FAO and WHO, 2020). At this time of crisis, food security is asso-
this plan, priority steps and actions are outlined in eight main topics: ciated with consumers’ access to food rather than food availability
(OECD, 2020b).
• Coordination, planning, and monitoring at the country level; Consumers generally do not think much about how the food
• Risk communication and community participation; on their tables is produced. However, concerns about food safety
• Surveillance, quick response teams, and case investigation; in the midst of the global pandemic have drawn attention to the
• Entry points; enormous infrastructure and workforce responsible for creating a
• National laboratories; safe and reliable food supply worldwide. Especially at the beginning
• Prevention and control of infection; of this global crisis, consumer demand for food has increased and
• Situation management; some store shelves have been temporarily emptied and resulted in ex-
the well-known organizations such as Centres for Disease Control Logistics barriers that disrupt food supply chains further weaken
and Prevention (CDC), European Commission (EC), Food and high-value goods due to their short shelf life (Shahidi, 2020; FAO,
Agriculture Organization (FAO), International Food Information 2020j, FAO, 2020k).
Council (IFIC), International Food Policy Research Institute (IFPRI), Most agricultural activities depend on the season and weather,
International Labour Organization (ILO), International Trade and therefore, activities need to follow a fine-tuned schedule with
Centre (ITC), The Organization for Economic Co-operation and flexibility so that immediate actions can be performed when needed.
Development (OECD), and World Health Organization (WHO). Since all processes and stages in a supply chain are strongly con-
nected to each other, a slight delay or glitch can trigger a butterfly
Effects of pandemic on food supply chain effect resulting in a big loss in the yield and output (FAO, 2020k).
The Food supply chain can be divided into five stages, including agri- Actually, there are many reports that farmers were forced to des-
cultural production, postharvest handling, processing, distribution/ troy their products by burning or leaving them to spoil because of
retail/service, and consumption. Two systems are being used in the the restrictions. Dairy Farmers in America Co-operative consider 14
food supply chain regarding food quality and safety. The First one is million litres of milk are being dumped every day due to interrupted
based on regulations and laws that use mandatory standards which supply chain. In England, chair of dairy farmers reported that ap-
are inspected by state agencies. The Second one is relying on volun- proximately 5 million litres of milk are at risk in one week. Also, It
that they would get sick at work, mostly in meat-processing food hands, separating raw and cooked meat, etc.) should be followed
companies at the time of the outbreak. For these reasons, it was while preparing and storing the foods (Rizou et al., 2020; Shahidi,
thought that the production capacity of pork facilities decreased 2020).
by approximately 25% in late April (Devereux et al., 2020; Flynn, Centralized food manufacturing is another factor that caused
2020). disruption of food chains during COVID-19 outbreak. This para-
In this context, there were at least 462 meat packaging and 257 digm helped the food processors to increase production and reduce
food-processing plants and 93 farm and production facilities were the costs. However, centralization has some drawbacks such as rigid
affected by COVID-19 cases in the USA. At least 54,036 workers and lengthy supply chain issues. In addition, using the small number
(39,905 meat packaging workers, 8,343 food-processing workers, of very large production facilities to meet the demands might create
and 5,788 farmers) have been identified as COVID-19 positive and at problems (Almena et al., 2019a) such as closure of the entire facility
least 232 workers (184 meat packaging workers, 34 food-processing in case of an outbreak leaving high capacity production lines with
workers, and 14 farm workers) have lost their lives (Douglas, 2020). less alternatives.
In Brazil, 2,400 meat plant workers were identified as COVID-19 Governments are also facing financial pressures due to the eco-
positive from 24 slaughterhouses in 18 municipalities. Several meat nomic shrinkage and reallocating their resources focusing on finan-
factories suspended their operations after 246 positive cases in cial incentives and social assistance programs. Therefore, it may be
the supply–demand balance and left small producers and operators this without exceeding normal budget. Consumers adopted a basic
in a difficult situation (FAO, 2020i). approach of returning to natural food and beverage products which
contain ingredients that provide nutritional supplements such as
Effects of pandemic on consumer behaviour fruits and vegetables, legumes, whole grains, or olive oil. At the same
When the issue of how the COVID-19 pandemic affects consumers’ time, most consumers are concerned about the effect of COVID-19
food demand is examined, it is seen that the demand varies de- on their mental effects; therefore, many consumers are looking for
pending on the price of foodstuffs, income level of consumers, socio- food products to improve this mood (Hughes, 2020; Muscogiuri
demographic situation, consumption, and shopping preferences and et al., 2020).
time constraints. In addition, the number of visits to food store and In a recent poll by Italy’s Agricultural Research and Economic
spending money on food in per visit changed (Bakalis et al., 2020; Council (CREA), the behaviour of the Italian population on food
Cranfield, 2020). choices and behaviour was monitored under COVID-19 quarantine.
COVID-19 outbreak interrupted the daily routine and resulted Approximately 2,900 people from all regions of Italy responded.
in boredom which can be defined as high energy intake by the con- According to the results, healthy food and beverage consumption
sumption of high amount of fat, carbohydrate, and proteins. In add- increased for vegetables (33%), fruit (29%), legumes (26.5%), and
ition, quarantine caused stress in people and pushed them toward extra virgin olive oil (21.5%). However, it was determined that
(Shafiee-Jood and Cai, 2016). However, the opposite is also possible FAO’s 2020 estimates, wheat and coarse grain production is ex-
since lots of the perishable foods were discarded or dumped due to pected to be similar to 2019. For this reason, global grain markets
the closure of schools, restaurants, or processing plants. In addition, are expected to follow a balanced situation despite the concern of
transportation problems during lockdown or overbuying of perish- COVID-19 (FAO, 2020b).
able items because of panic buying resulted in higher food waste A total of 19 countries have taken measures to restrict exports,
levels (Fleetwood, 2020; Sharma et al., 2020). Changing demands which are related to 27 food products due to COVID-19 outbreak.
also will bring changes to packaging materials/design, delivery op- Some of these restrictions are inactive and currently a total of 8
tions, and storage conditions (Reynold, 2020). countries are continuing their measures on 11 food. When the ef-
fects of restrictions on importing countries are evaluated (expressed
Effects of pandemic on global food trade as Kcal unit), it is seen that Tajikistan, Uzbekistan, Afghanistan, and
Although the current conditions seem exceptional, the vulnerability Azerbaijan were negatively affected by 79%, 70%, 61%, and 54%,
of food systems to problems related to climate and diseases has been respectively (IFPRI, 2020).
experienced long before the COVID-19 crisis. Food systems have To summarize, trading provides to move the products from sur-
been unstable from various events and shocks previously such as plus to deficit areas, preventing the shortages and food insecurity
the oil crisis in the 1970s, the SARS and Ebola outbreaks, and the related to reliance only on domestic production (Baldos and Hertel,
Valuable bioactive components such as phenols, carotenoids, maintain the balance between the production quantity and safety of
pectins, flavonoids, essential oils, glucosinolates, isothiocyanates, workers (FAO, 2020j).
and whey protein isolate can be derived from food wastes to re- Decentralization of food manufacture might also be used to
utilize them in food chain. These functional compounds can be used avoid drawbacks and risks associated with centralization paradigm
as preservatives, gelling agents, food, or nutritional supplements. in the era of COVID-19. Low-scale facilities located near the con-
Conventional or innovative techniques can be applied in the extrac- sumers reduce the storage and transportation costs and minimize
tion, fractionation, and isolation stages of bioactive components the environmental impacts. Building the production facilities closer
from food wastes (Deng et al., 2015; Galanakis, 2012; Galanakis, to consumers help shorten the supply chain and decrease the emis-
2013). However, additional collection and processing centres are sion and energy consumption during transportation and storage.
required to recover food wastes generated during production, Decentralization provides flexibility in supply chain and allows cus-
processing, or consumption stages. tomers to get fresh and natural products. It also helps us to simplify
The European Food Safety Authority indicated that food is not a the administration procedures in order to reach poor and disad-
source of coronavirus and virus cannot be transmitted through the vantaged people (Almena et al., 2019a; Almena et al., 2019b; FAO,
consumption of food. Environmental surfaces such as doorknobs, 2005).
light switches, or foods contaminated with COVID-19 virus remain Industry also should determine which transportation routes are
face in market access. Higher transaction charges in all deals do not small farmers to take risks and cope with high risk situations. It
allow small holders to be in better positions due to their small scale. also enables making efficient investment decisions which results in
Therefore, digitization of procedures allows small farmers to sell rise in agricultural capacity and profitability (Iyanda et al., 2014).
their crops at higher price and helps them to reach more customers Temporary liquidity guarantee program (TLGP) can promote confi-
in a direct and effective way bypassing intermediaries. The largest dence in financial organizations. Firstly, the TLGP allows a limited
e-commerce companies collaborate with the government to digitize term guarantee for newly issued debt of financial companies and af-
the services of rural markets and encourage them to be part of the filiates. Secondly, the TLGP fully insured non-interest bearing trans-
e-commerce economy. These platforms offer mostly organic fertil- action accounts. Governments can provide interest-free loans or
izers to the market at a reasonable cost (Zeng et al., 2017; FAO, cash grants or arrange their pay periods to needy farmers to restart
2020j, 2020e). production. Guaranteed loans are essential sources of credits given
‘Supply Chain Management (SCM) Data Science’ can be used to small farmers that are assisted by commercial creditors and pro-
by governments and private sectors to solve SCM problems and tect them against loss by governments (FAO, 2020j, 2020d; Dodson,
forecast the outcomes by performing quantitative and qualitative 2014; Davison, 2019). Trade restrictions and bureaucratic barriers
methods bearing in mind the data quality and data availability should be lifted to ensure the accessibility of small-scale farmers and
(Waller and Fawcett, 2013). Therefore, data availability and dis- producers to markets. Governmental agencies must meet the energy
In the USA, Department of Agriculture committed programs and and vulnerable groups affected by changes in supply and demand
flexibilities such as food assistance, dumped milk, crop insurance, and the need to adapt in accordance with these changes can be regu-
farm loan, commodity loan, crop acreage, animal mortality, pay- lated by legal frameworks. Regulations to be enacted in emergen-
check protection, and economic injury disaster loan to help agri- cies such as the COVID-19 outbreak can contribute to the safe and
cultural producers are related to the COVID-19 outbreak (USDA, problem-free operation of transactions. Moreover, it is necessary to
2020). strengthen the capacities of legal regulations, including ensuring the
Governments also should establish and operate emergency pro- proportionality and necessity of restrictive measures and providing
visioning strategies to support production. The regions most af- flexibility in the implementation of certain administrative require-
fected by the outbreak should be protected by temporary input ments to face the challenges posed by the new situation. Providing
subsidies programs. Timely support is essential for planting season flexibility in licensing requirements for direct selling, e-commerce,
for the next spring (FAO, 2020d). Data collection and assessment and food transport can also help small producers and agricultural
programs for migrants should be used to determine when and businesses to find alternative market opportunities (FAO, 2020i)
where the migrants are needed (Martin, 2016). Facilitating the since flexibility is relatively associated with weak/strong position of
cross-border movement of migrant workers is important because farmers and presence of long/short food supply chains. Customers
movement restrictions and border closures have a strong negative sometimes believe that food choice is imposed by supply chain chal-
Actions on global trade (Gardner, 2001; WFP, 2020b; Espitia et al., 2020). Therefore, re-
Continuing the flow of agricultural inputs between countries, even in straint of trade is not only unnecessary, and it also harms all the
quarantine restrictions or closing borders, is vital. Therefore, meas- actors in the food supply chain and creates panic and fear in the
ures to facilitate the trade of farming inputs such as equipments and markets (Liu et al., 2020).
fertilizers should be taken in the short run because these require-
ments are crucial for planting activities to continue smoothly (FAO,
2020j).
Understanding the COVID-19 impact behind restriction pol- Conclusions
icies is also important since food availability levels are high and
During a pandemic, continuing the flow of the supply in agriculture
the forecast of key staple production is good. Despite these fa-
and food sector, which is one of the most important sectors together
vourable conditions, governments are working to ensure the food
with health, is vital to prevent the food crisis and reducing the nega-
security due to high consumer demand and protect vulnerable
tive impact on the global economy. Although no major problems
people from price increases. However, lessons from past experi-
have been observed in the food supply chains so far it remains un-
ences have indicated that avoiding trade restriction policies can
clear in the face of an uncertain future. As a result, each country has
be as effective to protect consumers and farm incomes as direct
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