The impacts of Covid-19 on the agrifood chain and food security

  • 23 Jun 2020
  • Federica
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According to Food and Agricultural Organization of the United Nations (FAO) experts, the global crisis generated by Covid-19 will have severe impacts across agrifood systems. The various stakeholders in the sector are calling for measures to protect all supply chains and, at  the same time, to mitigate the risk of shock, especially with regard to the most fragile populations. As a result, appropriate risk management & business continuity plans should be defined and optimized, as soon as possible, to avoid the disruption of food systems, while ensuring food security.

Global agrifood trade – According to FAO studies, one out of  five foods - that we normally consume  - crosses  at least one international border; moreover, countries that depend on imports of agrifood products are more vulnerable, since a decrease in imported volumes – as is happening now - can generate the devaluation of the currency and  a subsequent increase in food prices and, therefore, affect negatively the family budget. A situation like this - in the long term - can have an inevitable impact on public health and natural development of future generations, as well as on current and future economic productivity.

It would be desirable, for all countries, to revise their trade and tax policies in order to create a favorable market scenario with respect to agrifood products, avoiding the so-called "beggar  thy  neighbor" policies, i.e. policies at the expense of other countries in the form of higher export taxes or an outright ban on exports by some countries, as has happened since 2008. 

Just in this direction, last April 2020, the Italian Deputy Foreign Minister,  Emanuela Del Re, issued a warning to the association "Friends on Food Security and Nutrition" (composed of 41 UN countries): "As governments, we must do our best to keep trade routes and distribution chains functioning ... There is no justification for restrictions on the national and international food movement."

On this occasion Italy’s support was confirmed for the FAO to launch a "food coalition", i.e. working together  and involving relevant players in the agri-food sector (the scientific community in primis), in order to ensure the security, sustainability and resilience of this strategic sector during and after this pandemic crisis.

The European Scenario - The EU has published guidelines in terms of internal border management, in order to safeguard supply chains: the continuous flow of goods - including agri-food goods - through the so-called “green lanes”, is ensured and the crossing of internal borders – in terms of health checks and screenings - takes no more than 15 minutes. It should also be remembered that the European agri-food system contributes to the food well-being of more than 500 million European citizens, as well as being one of the most important productions at global level.

Business continuity - a powerful lever to guarantee the agrifood supply chain and food security

The lockdowns imposed to contain Covid-19 in various countries is, inevitably, impacting on supply chains and agri-food logistics. FAO recently stated that the availability of food has been adequate everywhere, as well as world stocks. The continuous widespread  lockdowns  are impacting the agri-food supply chain and, if governments do not take quickly adequate measures to ensure the resilience of the sector, disruptions could occur in the coming months, with serious impacts on public health, already heavily “stressed” by the pandemic.

A careful risk assessment and an articulated business continuity plan can support companies to deal with unforeseen events that may threaten their sustainability or even their existence, helping to cope with systemic effects such as livestock diseases, pandemics, supply chain disruption or logistics. It is necessary to identify mitigation measures, such as alternative suppliers, in times of "peace", in order to be resilient and ready to cope with crisis in the so-called “times of war”.

The G20 Special Summit of Agriculture Ministers was held in Washington on 21 April 2020. On that occasion FAO, IFAD (International Fund for Agricultural  Development), the World Bank and WFP (World Food Program) issued a joint statement on the impact of Covid-19 on food security and nutrition, especially with respect to the populations of the poorest countries.

The statement observes that the"Covid-19 pandemic has caused a high number of casualties worldwide and represents an unprecedented challenge with profound social and economic consequences, especially with respect to food security and nutrition. The responses must be well coordinated throughout the world, to limit the consequences, end the pandemic and prevent it from happening again."

Conclusions
The aim, today and in the future, is to ensure health & security of agri-food products, as well as health of various actors and consumers, throughout the agrifood supply chain.

It is also desirable for countries to avoid any unjustified restrictive measures, which could lead to excessive food price volatility in international markets and threaten food security and nutrition of the world's population, particularly those living in the poorest environments. Emergency measures, to counter this pandemic, must be targeted, proportionate and transparent; we need to strengthen control, assess risks and apply the principles of continuity and resilience.

The various countries and international organizations must work more and together to strengthen international cooperation and safeguard the agri-food system; to share best practices in terms of food and nutrition security; to promote correct scientific information and research; to ensure responsible investment, innovation and reforms that will help improve the sustainability of the sector.

As Hippocrates of Kos, the ancient father of all doctors, said: " Let food be thy medicine, and let medicine be thy food.” 

About the author
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Federica Livelli

Business Continuity & Risk Management Consultant

She is a Business Continuity & Risk Management consultant and Training Center Director at BeDisruptive Consultant.

She carries out activities aiming at improving awarness and development of resilience culture at various institutions and universities in Italy and abroad (POLIMI-BOCCONI University, University of Cagliari, Environmental Master University of Padua, LIUC University at Castellanza, SUPSI Lugano, University of Genoa).

Member of BCI Italy Chapter and ANRA  (Italian Association of Risk Manager& Insurance Manager) board; Scientific Committee of CLUSIT (Italian Association for Cyber Security), CLUSIT HEALTH Committee, CLUSIT Artificial Intelligence Commmittee ; FERMA (Federation of European Risk Management Associations) Digital Committee.

 

Speaker and moderator in various national and international seminars and conferences.

Author of numerous articles ref. various online magazines and publications in Italy and abroad.

 

 

 

"Organizations - to survive in the increasingly complex and erratic context arising from the pandemic and characterized by geopolitical and economic crises, ongoing conflicts, cyber-attacks and supply chain disruption must treasure the lessons learned. That is, they need to invest more in resilience, at all levels and  create a more flexible and secure ecosystem, able to anticipate, resist and recover from adverse and unexpected events that can compromise the organization's operations.

In fact, it is a matter of building a resilient, "antifragile" business model that presupposes the adoption of strategic disciplines such as risk management, business continuity and cyber security in an increasingly data-driven world.

The scenarios in which we find ourselves living require a sudden response and structured resilience. We can no longer wait for the unexpected, it's time to be proactive and anticipate it!"

 

 


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