Impact of the COVID-19 pandemic on the food market

ABSTRACT

The aim of this paper is to contribute knowledge about the impact of the coronavirus pandemic on behavior and changes in the food market and to assess the level of resilience of the agri-food sector to the coronavirus pandemic, analyzing its impact on commodity prices and focusing on supply chain and values. The paper presents an overview of literature data related to the topic of the impact of the coronavirus pandemic on the food market, ie the food chain. Analyzing FAO Food Price Index (ICH) from 2015 to 2020, the average ICH is growing slightly on average in 2020 (5.3%) compared to 2015. Looking at individual commodity groups, more or less oscillations were observed in all of them, and the increase in the price index refers to dairy products, vegetable oils and cereals, while a decrease was observed in meat and sugar. If we analyze more closely the movement of ICH and commodity groups in the period from March 2020 to March 2021, we can see an increase in the ICH average and all individual commodity groups. The increase is most significant in vegetable oils and sugars. The trade of purchased and sold agricultural products in Croatia from 2018 to 2020 slightly increased in 2020 compared to the previous (non-pandemic) year. Unlike other sectors, the food sector, as part of the national critical infrastructure, remained operational throughout the supply chain during the pandemic. As this crisis is unlikely to remain a one-off, further research efforts should focus on considering its long-term impacts, such as negative impacts on job security, supply chains and globalization.