Miller Magazine Issue: 129 September 2020
21 NEWS MILLER / September 2020 countries with strict social distancing requirements. But food supply chains differ across countries and crops, as do the impacts of COVID-19 on supplies. Capital-in- tensive food value chains that are highly mechanized (predominant in rich countries for staple crops such as wheat, maize, and soybeans) have continued functio- ning with few disruptions. In contrast, food producti- on in poor countries tends to be more labor-intensive; and production of many non-staples, such as fruits and vegetables, worldwide requires workers to be in close proximity. These food value chains have shown more supply disruptions owing to the risk of disease trans- mission, labor shortages, and disruptions in transpor- tation and logistics. Parts of food processing sectors in rich countries have also been susceptible to such dis- ruptions, as evident in the case of the United States and Europe, where 30,000 workers in meat processing tested positive for COVID-19, causing many plant clo- sures. “It is critical to exempt agricultural practices and ac- tors from COVID-19 lockdown measures to ensure the adequate flow of food from farm to fork”, said IFP- RI’s Markets, Trade and Institutions Division Director Rob Vos. The researchers point to the “green lanes” the Chinese government created to ease the transport, production processes, and distribution of agricultural inputs and food products as an example. Trade is also essential to address issues of availabi- lity and stability. It ensures diversification of supplies, reduces gaps in production, and helps stabilize world markets. Export restrictions on staple foods including rice and wheat, imposed by 21 countries in the early months of the pandemic, created volatility and upward pressure on world prices for food staples. “Fortunately, many of these export restrictions have since been lifted, and world market prices for rice, for instance, declined after the end of Vietnam’s export ban,” said article co-author and IFPRI Senior Research Fellow David La- borde. The researchers recommend governments avoid further use of disruptive policies like export restrictions on food, keep policies consistent with rules agreed at the WTO, and maintain open trade channels. Fiscal challenges facing low- and middle-income countries could create strong international spillover effects for the economic consequences of COVID-19. Support and response from high-income countries and international organizations are crucial for poor count- ries with limited fiscal space. “Such support would not only aid global economic recovery but also mitigate the enormous humanitarian costs associated with the he- alth tragedy of COVID-19 and the consequent food crisis,” said article co-author and IFPRI Senior Research Fellow Will Martin.
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