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Covid-19: a new reality

In part one of our new Keeping the Chain Going series, we begin our insight into the impact of the coronavirus pandemic on global supply chains
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In part one of our new Keeping the Chain Going series, we begin our insight into the impact of the coronavirus pandemic on global supply chains

COVID-19 has become the defining global health crisis of our time. Since its detection in Asia at the end of 2019, the virus has spread to every populated continent. Virtually all nations have experienced states of lockdown, quarantine or social distancing. And billions of people have had to drastically change the way they live, work and socialise.  

The human cost of COVID-19 has been devastatingly clear and tragic. But this pandemic has become much more than a health crisis. It’s economic impact is huge and is being felt across all industries, sectors and businesses, with supply chains around the world reeling from a series of unprecedented restrictions and challenges.

<p><strong><span>COVID-19: THE ECONOMIC IMPACT </span></strong></p>

World merchandise trade is expected to fall by between 13% and 32% in 2020 Source: World Trade Organisation

Over 80% of companies expect to see supply chain disruptions due to COVID-19 Source: Institute For Supply Chain Management

The global cost of COVID-19 could range from $2 trillion up to $4.1 trillion Source: Asian Development Bank

Straining the supply

With national lockdowns, restricted airspace and closed borders, COVID-19 has brought widespread disruption to economies around the world. And this disruption has placed a huge strain on the world’s supply chains, particularly when it comes to the continued provision and movement of food.

From farms and factories to distribution and retail, serious challenges have materialised at every stage of the supply chain. Not least of which has been the restriction and removal of key workers to protect lives, as well as surges in demand for many household goods and items, particularly packaged and shelf-stable food products.

In many markets, food and beverage companies have been classified as essential, meaning a significant proportion of producers and manufacturers have had to stay open, maintain operations as normal and even increase production. All while navigating prohibitive lockdown conditions, following strict social distancing, and implementing stringent pandemic protocols.

Keeping the chain going

While businesses continue to adjust to a new and evolving COVID-19 reality, the question many are asking is just how deep do the scars run? How badly have supply chains been disrupted? How has the pandemic impacted consumer demands? And what does this all mean for the future of the food and beverage industry?

In this series, we’ll aim to answer questions like these – exploring the immediate and long-term impacts of COVID-19 on food supply chains. We’ll examine how the industry is changing, what producers can do to stay agile, and how supply chains can become more resilient in the years and decades ahead.

Don’t miss part two of our Keeping the Chain Going series when we’ll take a look at how SIG continues to respond and stand up to COVID-19.