
Dear readers,
It seems that the aftershocks of the pandemic that occupied the agenda of the last year will continue in 2021. In this period, both states and the private sector have to deal with food security issue with short, medium and long term projects. In this context,
agriculture,
livestock and feed industries have to be evaluated with a holistic perspective.
The virus, which has spread in waves around the world since the first months of 2020, disrupted the
supply chains, especially of the food sector, due to the panic and shock atmosphere. After this panic atmosphere, the empty market shelves and sudden and sharp changes in consumption habits caused alarm bells to ring not only in underdeveloped or developing countries but also around the globe Western including Europe and the USA.
The states and the private sector, which survived the first concussion during where the end consumer felt the pandemic to the bone and have largely normalized the
supply chains, are somewhat relieved with the good news of vaccines from China and Germany. Although the vaccine news is pleasing, it will not be so easy to root the virus away. Aware of this situation, states are taking measures to prevent a possible food crisis on their own territories. For this reason, stocking and protectionist reflexes in the food sector, especially in cereals, have reached the highest level.
While producer countries impose various restrictions and additional taxes on exports, importing countries seem determined to keep their grain stocks full under these challenging conditions. Of course, a shrinking supply and an increasing demand at the same time will be reflected on the end consumer as a price increase with a chain effect starting from raw materials to the market shelves. In this sense, it doesn't take a prophet to foresee that the increase in food prices will continue also in 2021.
It should be mentioned here that in such crisis situations, although low-cost products such as wheat and pasta come to the fore in the remedies of the states, the protein needs of the consumer should not be overlooked.
See you in the next issue.