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How COVID-19 crisis impacts food industry producers?

The virus outbreak is a worldwide tragedy and has a lasting effect on the producers of the food industry. Because the rumors revolved around more than facts in the pandemic, people were worried about food security. Food security is the availability of food items to all people, and it was questioned everywhere. Consequently, the general population rushed towards panic buying and started storing canned foods and long preservable food items.

The supermarkets and grocery stores were emptied out as a result, and a sudden rise in demand troubled many local food industry producers. With the closure of international borders, imports and exports are out of the equation. There is a dire need for local food producers to fill the gap. Many governments continued with the life-aiding products even in the lockdown. Grocery stores are open with limited operative approval. This creates a huge opportunity for local food industry producers.


Whereas the international food industry has seen a disastrous impact amid the crisis. As the epidemic is completely unprecedented, it moved every corner of the business world. The transportation restrictions, shipment bans have affected every profession. Russians have proposed the idea of keeping their grains’ production inside the country and not exporting the product. These crises are impacting food producers.



Although we empathize with the persons affected and their families by the virus, the financial crisis it has brought to the food industry is immense. We could have a food-crisis at our hands in no time. There are huge losses in incomes for the Food-Industry- Producers. Meat processing plants are closed in some countries, hence impacting the supply chain.

The producers who relied heavily on exporting their food items are suffering the worst with the border controls, and pandemic tensions. People are avoiding the use of food products coming from other locations, as it might contain virus imprints along. COVID- 19 pandemic has impacted the food industry producers who only, or mainly, exported their goods. Now, they are either closed or smart business persons who are looking to utilize the opportunities in the local markets.


Hoarding by consumers resulted in sudden empty shelves with no demand in the coming days from those buyers. Since the panic purchasers have stocked up the food items for weeks to come, they will not be buying those food items again in the coming weeks. Do not take empty shelves as a huge demand for granted, before storing excessively in your warehouse after filling the shelves, consider the actual demand.


Since eat-in at all restaurants is prohibited in most countries around the globe, there is a huge decrease in commercial food items. The food industry producers who were manufacturing commercial food items have been hurt badly. Products such as potatoes and milk have seen a sheer decline in the market’s demand.


Price gouging has also impacted the food industry negatively. Merchants have increased the prices above the agreeable rates without rationalization. This has gained them short-term profits but it has impacted the food industry in the long term categorically.

Are trade agreements efficient for developing countries

Developing countries need a shot at going big, and a trade agreement might just provide that. Some people believe that trade agreements are beneficial for developed countries but little did they miss out on the opportunities it creates for underdeveloped nations. The smaller republics have a scarcity of resources; hence they can not score favorable trade agreements. These less established countries are often rich in a few and poor in the rest when it comes to capitals. A positive trade agreement can change the fate of a nation, and aid the economy of those countries to grow faster. It could lead to the two most positive outcomes; that is, relaxation in sanctions and agreements of foreign aid.

Trade Agreements at the international level

There are two prime categories of trade agreements at the international level:

Regional Agreements – A group of countries sit together and formulate an agreement for the common good. There are many trade unions in different continents that are articulating these contracts to benefit its members. The EU and World Trade Organization are the biggest examples of this nature.

Bilateral Agreements – This type of trading treaty is signed by two countries. It charts down the rules and regulations which both countries will abide by. This bi-national settlement is always constructive for both countries.

An under-developed country, if pursuing trade agreements keenly, often land on bilateral and investment agreements with neighboring countries. These trade agreements prove profitable to both the countries, and the deal does not need to be made with only a developed country necessarily. The trade agreements can form between two less-developed nations. It provides a better quality of life for the parties involved in the trade agreements. These arrangements are extremely efficient and provide better economic resources, increased production capabilities, and improved foreign relations. Both

The countries in the developmental stage often have a lesser standard of living or quality of life than the developed world. If the Government proves to be strategic, they register with memberships of worldwide schemes, such as ECOTA, SAARC, and SAFTA. These mutually beneficial trade unions ensure the manufacturing, buying, selling favorable across the board. They often form a free trade area; consequently, it enhances the level of economic growth.

When a trade agreement lowers the border difficulties and trade barriers, it does not only prove efficient for the governments but the population as well. The end consumer takes great benefit from the variety of goods available in markets. Quality products are ensured, and even lower prices can come into play after a good business agreement among different nations.

Trade agreements provide an effective balance for developing nations, and the overall economic operations are improved. The growing industries of a less-developed country see a burgeoning rise of demand if they can export their merchandise to other countries. Those factories will be given assurance of a better business opportunity by the contracts among governments. This creates an opportunity for the local industry to grow and hire more employees to meet business needs. Lower the tariffs are, lower the costs will be; resultantly, the well being of those nations will improve.

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