ISSN 2308-4057 (Print),
ISSN 2310-9599 (Online)

Influence of coronavirus crisis on food industry economy

Abstract
Recently, there has been a very rapid accumulation of empirical data of economic indicators of the food crisis associated with the coronavirus pandemic. The purpose of this article was to develop a set of measures aimed at minimizing the negative economic impact of the coronavirus crisis (CVC) both at the national and international levels. All these presupposed solving the following tasks. Having studied the nature of the crisis, we found out that it had the greatest impact on such components of food sector as transport, logistic chains, and human resources. We revealed that, first of all, such areas of the economy as fisheries and agricultural production of fruits and vegetables were affected by the crisis. It is obvious that it will also adversely affect small farmers, seasonal and migrant workers, etc. The work proposes the most effective public measures against the negative impact of CVC on the global economy. In particular, we examined the scenario of (possibly temporary) nationalization of operators of critical infrastructure to produce planned critical goods or services. The developed set of measures included limitation of the workers’ rights and freedoms by imposing to them labor duties, or replacing them with military ones, limiting the price of strategic goods, and organizing their consumption and distribution. Possible triggers for the implementation of such a scenario in the agricultural sector are offered, as well as mechanisms of protecting and supporting groups of economic agents affected by CVC are proposed.
Keywords
Coronavirus crisis, food crisis, pandemic, food, financing, agricultural products, economy, food security, crisis management
REFERENCES
  1. “Covid-19 amenaza con una crisis alimentaria mundial”, advierte ONU [Internet]. [cited 2020 Apr 01]. Available from: https://www.elheraldodejuarez.com.mx/mundo/covid-19-amenaza-con-una-crisis-alimentaria-mundial-advierte-onu-5044991.html.
  2. D’Oro S, Cucinotta G. Covid-19, il monito della FAO: “Il mondo sia pronto a battersi per chi ha meno” [Internet]. [cited 2020 Mar 30]. Available from: https://www.corriere.it/pianeta2020/20_marzo_30/covid-19-monito-fao-ilmondo-sia-pronto-battersi-chi-ha-meno-a2705d80-71fc-11ea-b6ca-dd4d8a93db33.shtml.
  3. Gunjal K, Senahoun J. Assessing the impact of infectious disease outbreaks on agriculture and food security: The case of the Ebola virus disease outbreak in West Africa. 2016. DOI: https://doi.org/10.1481/icasVII.2016.g45d.
  4. Anticipating the impacts of COVID-19 in humanitarian and food crisis contexts. Rome: FAO; 2020. 5 p. DOI: https:// doi.org/10.4060/ca8464en.
  5. Coy P. There’s no good reason to hoard anything, especially food. Bloomberg Businessweek [Internet]. [cited 2020 Apr 01]. Available from: https://www.bloomberg.com/news/articles/2020-04-01/there-s-no-good-reason-to-hoardanything-especially-food.
  6. Scialabba NE-H, Jan O, Tostivint C, Turbé A, O’Connor C, Lavelle P, et al. Food wastage footprint. Impacts on natural resources. Rome: FAO; 2013. 63 p.
  7. Genkin AS. Koronaehkonomika: Mir stanet drugim, no vyzhivet [Corona economics: the world will be different, but will survive]. Invest Foresight [Internet]. [cited 2020 Mar 29]. Available from: https://www.if24.ru/koronaekonomikamir-stanet-drugim-no-vyzhivet.
  8. Torero Cullen M. COVID-19 and the risk to food supply chains: How to respond? Rome: FAO; 2020. 7 p. DOI: https:// doi.org/10.4060/ca8388en.
  9. Responding to the impact of the COVID-19 outbreak on food value chains through efficient logistics. Rome: FAO; 2020. 4 p. DOI: https://doi.org/10.4060/ca8466en.
  10. The global report on food crises 2019. Rome: FAO; 2019. 202 p.
  11. The State of Food Insecurity in the World 2008. High food prices and food security – threats and opportunities. Rome: FAO; 2008. 59 p.
  12. The state of food security and nutrition in the World. Safeguarding against economic slowdowns and downturns. Rome: FAO; 2019. 239 p.
  13. Mely C-A, Teng PPS, Shrestha M, Nair T, Lassa JA. Public stockpiling and food security. Singapore: Nanyang Technological University; 2015. 17 p.
  14. Caramel L. En Afrique, la fermeture des frontières réveille la crainte de pénuries alimentaires [In Africa, border closures raise fears of food shortages]. Le Monde [Internet]. [cited 2020 Mar 30]. Available from: https://www. lemonde.fr/afrique/article/2020/03/23/en-afrique-la-fermeture-des-frontieres-reveille-la-crainte-de-penuriesalimentaires_6034114_3212.html.
  15. Kafarakis F. How the coronavirus will shape the food supply Chain. Forbes [Internet]. [cited 2020 Mar 29]. Availa- ble from: https://www.forbes.com/sites/philkafarakis/2020/03/24/how-the-coronavirus-will-shape-the-food-supplychain/#771e47513e1c.
  16. Danley S. Food industry braces for coronavirus impacts. Food Business News [Internet]. [cited 2020 Mar 29]. Available from: https://www.foodbusinessnews.net/articles/15624-food-industry-braces-for-coronavirus-impacts.
  17. Coronavirus measures could cause global food shortage, UN warns. The Guardian [Internet]. [cited 2020 Mar 30]. Available from: https://www.theguardian.com/global-development/2020/mar/26/coronavirus-measures-could-causeglobal-food-shortage-un-warns.
  18. Kostyrev A. 2019-nCoV poshel po pishchevoy tsepochke [2019-nCoV went through the food chain]. Kommersant [Internet]. [cited 2020 Apr 01]. Available from: https://www.kommersant.ru/doc/4235227.
  19. Matveev D. Kak koronavirus provotsiruet rost tsen na produkty pitaniya [How coronavirus provokes an increase in food prices]. Invest Foresight [Internet]. [cited 2020 Mar 29]. Available from: https://www.if24.ru/kak-koronavirusprovotsiruet-rost-tsen-na-produkty-pitaniya.
  20. Novyy A. Kak pishchevaya promyshlennostʹ reagiruet na povyshennyy spros iz-za koronavirusa [How food industry reacts to increased demand due to coronavirus]. Delovoy mir [Business World] [Internet]. [cited 2020 Mar 29]. Available from: https://delovoymir.biz/koronavirus-i-pishevaya-promishlennost.html.
  21. Fomchenkov T. Vadim Drobiz: Pandemiyu zalʹyut pivom [Drobiz Vadim. A pandemic will be poured with beer]. Invest Foresight [Internet]. [cited 2020 Apr 15]. Available from: https://www.if24.ru/vadim-drobiz-pandemia-i-alcohol.
  22. Il faut éviter que cette crise de santé publique ne déclenche une crise alimentaire [We must prevent this public health crisis from triggering a food crisis]. Le Monde [Internet]. [cited 2020 Apr 01]. Available from: https://www.lemonde. fr/idees/article/2020/04/01/qu-dongyu-il-faut-eviter-que-cette-crise-de-sante-publique-ne-declenche-une-crisealimentaire_6035171_3232.html.
  23. Sharma R. Food Export Restrictions: Review of the 2007–2010 experience and considerations for disciplining restrictive measures. FAO Commodity and trade policy research working paper. Rome: FAO; 2011. 32 p.
  24. Anderson K, Ivanic M, Martin W. Food price spikes, price insulation, and poverty. In: Chavas J-P, Hummels D. Wright BD, editors. The economics of food price volatility. National Bureau of Economic Research; 2014. pp. 311–339.
  25. Glauber J, Laborde D, Martin W, Vos R. COVID-19: Trade restrictions are worst possible response to safeguard food security. IFPRI Blog [Internet]. [cited 2020 Apr 01]. Available from: https://www.ifpri.org/blog/covid-19-traderestrictions-are-worst-possible-response-safeguard-food-security.
  26. Agricultural market information system [Internet]. [cited 2020 Apr 01]. Available from: www.amis-outlook.org.
  27. WTO agreements and public health – A joint study by WHO and the WTO secretariat. Geneva: World Trade Organization/World Health Organization; 2002. 175 p.
  28. Genkin AS. Pandemiya stavit pered obshchestvom novye ostrye voprosy [The pandemic raises new critical questions for society]. Finansovaya gazeta [Financial Newspaper] [Internet]. [cited 2020 Apr 13]. Available from: https:// fingazeta.ru/ekonomika/rossiyskaya_ekonomika/461123.
  29. Q&A: COVID-19 pandemic – impact on food and agriculture [Internet]. [cited 2020 Apr 13]. Available from: http:// www.fao.org/2019-ncov/q-and-a/impact-on-food-and-agriculture/en.
  30. McBreen K. GOP Rep. Massie warns us weeks away from food shortages. Infowars [Internet]. [cited 2020 Apr 13]. Available from: https://www.infowars.com/gop-rep-massie-warns-usa-weeks-away-from-food-shortages.
  31. Genkin AS. Denezhnye surrogaty v rossiyskoy ehkonomike [Money surrogates in the Russian economy]. Moscow: Alpina; 2000. 461 p. (In Russ.).
  32. Agri-food markets and trade policy in the time of COVID-19. Rome: FAO; 2020. 5 p. DOI: https://doi.org/10.4060/ ca8446en.
  33. Demeke M, Pangrazio G, Maetz M. Country responses to the food security crisis: Nature and preliminary implications of the policies pursued. Rome: FAO; 2009. 32 p.
How to quote?
About journal