Food production is struggling with logistics, as more countries attempt to slow down the virus. This is affecting the world's food supply and its network to provide it. Problems in processing and delivery can cause price increases in most developed markets during the coronavirus crisis. As more countries are shutting borders and ceasing trade, several countries are hoarding food.
Kazakhstan just stopped exporting wheat flour and also prohibited the export of carrots, sugar, and potatoes. Meanwhile, Vietnam is securing their own rice stocks, suspending similar exports as well. Serbia just stepped on the brakes by stopping the sale of sunflower oil and goods. Russian is on standby and ready to act when needed.
It might not seem so alarming, but these republics are beginning to look out for themselves. The COVID-19 pandemic is now endangering the trade of food and supplies but is not serious yet.
Tim Benton, research director in emerging risks at think tank Chatham House in London has voiced his concerns that it is happening now with lockdown all over the world that is compounded by food hoarding.
Food is still able to get to markets, but transporting it to the market is not easy. The coronavirus measures to lessen infection, panic buying and problems with no labor to handle food for the public is getting untenable.
For now, pantries are still full and the economic fallout from the coronavirus that originated from China is only beginning. Should restrictions in trade can have detrimental effects on everyone.
According to Ann Berg, an independent consultant and veteran agricultural trader who started her career at Louis Dreyfus Co. in 1974, once there are curfews, controlling the public crowds, and when going out only to get food, it leads to creation of food policy to prevent panic buying.
Nations may keep food reserves in a crisis like China that keeps a sizable stock pile for their own protection. The government is still buying to keep a supply for one year of consumption, as a fall back.
Countries like Algeria and Turkey are suspending importation of wheat till the middle of June.
More governments are moving to protect itself by hoarding food, next will be a problem that will affect all nations, including China as well.
By stopping the export of wheat that will affect the production of bread and firms that make it.
If these important commodities are not exported, these disruptions will be major problems for the world at large, all over.
Benton of Chatham house, added that if the global supply is not maintained, there will be chaos in the streets,
Food security is in danger
Benton said one food security is turned topsy-turvy with pro-nationalist policies, and scarce supplies will lead to increased food prices that will happen again.
Panic buying will raise prices of food and controls will be strained as those in policy making get stressed.
"Without the food supply, societies just totally break," Benton added.
It all begins when countries start hoarding food that making it one of the scariest aspects of the COVID-19 epidemic.