Dublin, 04 Feb. 2021 (GLOBE NEWSWIRE) — The “Emergence of COVID-19: Perspectives for the agricultural industry” report has been added to from ResearchAndMarkets.com offer.
The agricultural industry has played a central role in reducing poverty, improving incomes and food security for marginalized people. According to the World Bank, 80% of the world’s poor living in rural areas depend on agriculture, according to the World Bank projection under the pre-COVID-19 scenario, the development of agriculture should feed 9, 7 billion people by 2050, providing employment opportunity for working poor adults, thereby reducing extreme poverty.
The industry, which once accounted for 4% of global GDP in 2018, is under pressure from the COVID-19 pandemic which shares concerns such as the gap between trade and delivery prices for agricultural products, the chain disruption of supply and shortage of logistical resources, negative impact on farmers’ health, shortage of manpower to undertake operations and increased operational costs to comply with precautionary standards. Compared to the manufacturing and services sector, the agriculture sector is under the double pressure of COVID-19 and climate change. Thus, there is an urgent need for the public and private sectors to link mitigation measures to the agricultural sector.
In the Covid-19 scenario, agrarian economies such as India, Bangladesh, Vietnam for which agriculture holds 12 to 16% of their GDP have been the most affected. The agricultural sector is in decline despite the government launching programs and relief programs for the benefit of small-scale farmers. For example, despite the Indian government’s introduction of relief programs such as the INR 2,000 credit under the PMKISAN scheme, the capping of wage rates for laborers under the National Rural Guarantee Scheme (NREGS) , the loan moratorium and the reduction of agricultural loans and other financial and food assistance for vulnerable people. segment, the agriculture sector declined. India’s three-week lockdown schedule has clashed with the harvest time of rabi crops such as wheat, mustard, pulses and others. Farmers lacked workers to undertake the harvest due to migration to their natives, lack of adequate logistical support to sell the produce, and lagging government minimum support price operations. This has disrupted pre-harvest and post-harvest operations for India’s agricultural sector.
The decline of agriculture can also be observed in developed countries, for example, in the United States, the logistics of agricultural products which are rural roads remain inefficient due to pending receivables for infrastructure, lack of income for maintenance, according to the American Transportation Research Group (TRIP), 13% of major rural roads are not in operational condition, with 21% in poor condition, 66% in good condition. The low bandwidth of labor has worsened the situation in the agricultural sector. There has been a limited outflow of agricultural produce from California which supplies more than a third of the country’s fruits and vegetables as the number of positive COVID-19 cases has piled up. Companies such as Canada-based Ag Growth International (AGI) have suspended global operations in Italy, India, France and Brazil as requested by the government. The effect on agriculture would be compounded by lower global growth, as US GDP was cut by $1.5 trillion in economic output. This has led to contagion effects by causing a reduction in global trade as China’s economy is suffering the hardest. Relations had been on the decline since the US-China trade war, which also contributed to the decline in agricultural trade.
According to the global impact, agricultural commodity markets are stressed by the mismatch between commercial prices and physical delivery prices of agricultural products. For example, the Chicago Commercial Exchange remains closed until further notice for commodity trading, which also plays a vital role in agricultural commodity pricing. The forces of supply and demand remain zero in determining prices in the free market.
Farmers and people from the marginalized segment who remain the driving force of the agricultural sector remain vulnerable to the virus. For example, in the United States, most of the farming population in the American Midwest is over the age of 65, which implies that precautions are mandatory for American farmers. In addition, there remains a possibility that workers will be affected, which could lead to increased absenteeism.
Agricultural producers have also lost the network of traditional marketing channels and customer turnover has fallen sharply. These are the results of retail prices of agricultural products which have increased while the share of farmers in sales has decreased. It has also caused the farmers to destroy the produce due to the lack of availability of channels to sell the agricultural produce.
With the revival of industry, governments are resuming operations with precautions taken at the cost of indebtedness and a budget deficit. The graphs above show the comparison of the cost of government intervention for stimulus under the years of the Great Depression (2008-2010) and COVID-19 (2019-2021). The similar model For example, the US federal government has taken steps to offer the COVID-19 food assistance program in an effort to provide $16 billion in direct payments to farmers, European nations are discussing the possibility of providing expressways for the delivery of agricultural products. In the United States, the Federal Motor Carrier Safety Administration is taking steps to relax federal driving time rules for trucks delivering agricultural products. In addition, some companies ensure the safety of workers on their premises. Such as Spain-based Symaga Silos ensure safety during the operability and productivity of its factory operations.
Main topics covered:
1.1. Market definition
1.2. Methodology and assumptions
1.3. History of pandemics
1.4. The corona virus
1.4.1. What is the Corona virus?
2. Covid-19 scenarios
2.1. Scenario 1
3. Executive Summary
4. Economic impact of Covid-19
4.1. Global Economic Impact – Scenario 1
4.2. Global Economic Impact – Scenario 2
5. Global agriculture industry
5.1. World Agriculture – Scenario 1
5.2. World Agriculture – Scenario 2
6. Global Agriculture Industry by Segment and Country
6.1. Food crops
6.1.1. Food crop receipts by scenario and by country
6.2. Cash crops
6.2.1. Cash crop income by scenario and country
6.3. Plantation crops
6.3.1. Income from plantation crops by scenario and by country
6.4. Horticultural crops
6.4.1. Turnover of horticultural crops by scenario and by country
7. Recent News and Development
8. Company Profiles
8.1. Adicoagro SA
8.2. Arbaza Alimentos
8.3. Columbia Grain International
8.4. Calixt, Inc.
8.5. Hitech pulses
8.7. Dole Food Company
8.8. Del Monte Fresh Produce
For more information on this report, visit https://www.researchandmarkets.com/r/hvj1yt