Miller Magazine Issue: 145 January 2022

52 COVER STORY MILLER / january 2022 COVID-19 pandemic showed vulnerability within the agrifood system globally. Global trade in agricultural and food products plays an essential role in providing food security for the world. Volume and freedom of trade are key, as is diversity of global supply into those markets. The proportion of agricultural products traded has in- creased since the 2000s. A growing global trade in agri- cultural products increases resilience to supply shocks af- fecting geographical areas and allows for a more efficient global food supply chain. However, reliance on the global trading system increases vulnerability to events, such as trade restrictions, which disrupt the system. The COVID-19 pandemic caused some disruption to transboundary sup- ply chains but global trade in products is expected to re- cover and continue growing in the long term. Although the COVID-19 epidemic is primarily a pub- lic health concern, the necessary measures enacted to contain the spread of the virus, especially the restrictions placed on the movement of people and goods, have a significant impact on all levels of the grain market chain. The pandemic has inflicted unprecedented controls on travel and social distancing, with adverse econom- ic consequences still ongoing. Public health emergency measures have disrupted both supply and demand sides of agri-food systems worldwide. The agriculture and food sector experienced signifi- cant supply chain disruptions due to the COVID-19 cri- sis and associated lockdown measures. Yet relatively limited economic impacts were observed on the sector due to the agility of producers, supply chain actors and retailers, but also to the rapid and broad response by governments. As the impact of the COVID-19 pandemic on this sector subsides, policymakers will need to pivot and shift spending to investments that can enhance sec- tor-wide resilience. Three main types of impacts were observed on the agriculture and food sector. First, the production of certain agricultural goods was reduced due to the un- availability of seasonal labor, restrictions in the access to intermediate agriculture inputs, and the incapacity to sell output. Second, there were impacts on consumer demand driven by unemployment and income shocks associated with the containment measures, reduced de- mand for high-value products, consumer shift in demand from food services, and decline in biofuel demand. Third, supply chain disruptions were observed in many coun- tries, due in part to the contamination of employees in processing firms, the adoption of distancing and sanitary requirements, and transport and logistic issues.

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