IMPACTS OF COVID-19 ON THE FOOD SUPPLY CHAIN IN LATVIA: EVIDENCE OF THE EGG PRODUCTION AND PROCESSING SECTOR

COVID-19 has imposed shocks on all segments of food supply chains, simultaneously affecting farm production, food processing, transport and logistics and final demand. It is therefore important to assess the risks, the probability of their occurrence and their impacts in order to develop risk mitigation recommendations. In Latvia, poultry farming as an agricultural industry has centuries-old traditions. Poultry in Latvia are produced both on large poultry farms and on small and backyard farms. There are 21 large and medium laying hen egg producers in Latvia;however, 96% of the total poultry are concentrated on four farms. There are six producers of processed eggs and egg products in Latvia. Therefore, the aim of the present research is to examine the egg production and processing sector and analyze the risks caused by the Covid-19 pandemic in the sector and develop recommendations for their reduction in Latvia. The research identified 40 risks in the egg production and processing sector based on the methodology developed: 26 internal and 14 external risks, assessed the probability and impacts of their occurrence and, based on interviews with entrepreneurs involved in the sector, developed different level recommendations for stabilizing the situation in similar occasions as well as strengthen the resilience of the sector after the crisis. © 2021 International Multidisciplinary Scientific Geoconference. All rights reserved.

Resilience of milk supply chains during and after the CoviD-19 crisis in Latvia

The impacts of the COVID-19 pandemic on national economies are characterized as the worst economic turmoil in recent years, as economic growth slowed to the level of the 2008 global financial crisis. At the end of 2019 and the beginning of 2020, economic growth surveys did not project that the novel virus could have a negative impact on economic growth. As a result of the rapid spread of the virus and the increase in the number of infection cases, national governments took strict measures to limit the spread of the virus, which led to a significant deterioration in the economic situation in all industries of the economy. Agriculture plays an important role in providing food to the country’s population, yet the pandemic made a negative impact on sales volumes and prices in the domestic and international markets. The research aims to assess the impacts of the pandemic on milk supply chains in Latvia and come up with solutions to stabilizing the situation in the dairy sector. The national restrictions to combat the pandemic also hampered the dairy sector concerning the sale of raw milk and finished products in foreign markets, thereby leading to overproduction and stockpiling of the finished products, price dumping and a significant decrease in milk purchase prices to or below the production cost level for many dairy farms. Although there is no indication that the pandemic would lead to a decrease in the numbers of livestock and farms or output in early 2021, it is too early to assess the overall impact of the pandemic on dairy farming, as uncertainty over the duration of pandemic restrictions is a major risk to farm survival. The operation of the dairy sector was stabilized by means of the support provided by the government, as well as the farms’ accumulated financial and feed resources. In order to identify future challenges for milk supply chains, the research performed an analysis of operational risks for milk producers and processors to identify the most important risks and design recommendations for their elimination. The longer there is uncertainty about the return of the dairy sector to pre-pandemic output levels, the more likely it is that the pandemic is going to lead to a decrease in the numbers of dairy livestock and farms. © Latvia University of Life Sciences and Technologies, all rights reserved

Resilience of meat supply chains during and after covid-19 crisis

To protect their population during pandemic outbreak, countries apply several preventive restrictions and even shut down their economies to slow the spread of the coronavirus. Since food supply chains in developed countries are complicated and dependent on their external suppliers, these restrictions cause not only economic but also social tension. The limited access to raw materials, packaging material and labour force result in the increasing prices of food products, which forces the population to refuse from quality food products. In the European Union food supply chains, which are negatively affected by protectionist elements and COVID-19 restrictions, the room for manoeuvre of Latvia’s small open economy is limited. The current paper analyses the impact of COVID-19 crisis on global food industry, providing a deeper insight into the case study of Latvia meat supply chains’ experience in overcoming pandemic risks. The research outcomes lead to the conclusion that although COVID-19 impact during first breakout has not caused unexpected and serious consequences for the meat sector companies, the main internal and external risks are associated with further uncertainty and instability in the EU markets. Based on extensive analysis of meat sector specifics, the authors have summarized the recommendations for meat sector companies to better prepare for further potential pandemic situations. © 2021 by the authors. Licensee ESJ, Italy.