[COVID-19 Transformation] "Food is Sufficient... Emphasis Needed on Global Supply Chains"

'To Prevent the Spread of COVID-19' Stuck Due to Global Movement and Operation Restrictions
Trade and Border Openings Must Be Maintained

John Crisci, Acting Director of Supply Chain at WFP (Photo by WFP)

[Asia Economy Reporter Jeong Hyunjin] "The food supply chain is not functioning as effectively as before due to the novel coronavirus infection (COVID-19). The 'interconnectedness' of supply chains has come to the forefront as a result of COVID-19."

John Chrissy, Acting Director of Supply Chain at the World Food Programme (WFP), recently diagnosed the essence of the global food crisis caused by COVID-19 in a written interview with Asia Economy. He explained that it was logistics issues, not an absolute decrease in production, that triggered the food crisis concerns. Chrissy is a supply chain expert who has overseen the Logistics Execution Support System (LESS) project, one of WFP's largest projects involving about 90 countries. He also has practical experience responding to viruses, having worked as an emergency coordinator in African countries such as Sudan, Congo, and Sierra Leone during the 2014 Ebola outbreak.

The food crisis concerns arose due to global movement and operation restrictions. In the United States, a 'meat shortage' occurred as meat processing plants that slaughtered and processed cattle and pigs closed, and farms faced labor shortages mainly among immigrants, disrupting grain and fruit cultivation. Some food-exporting countries like Vietnam and Russia closed their borders, and in Europe, movements to promote consumption of domestic agricultural products to support local farms led to the emergence of 'food nationalism.'

Chrissy stated, "The food supply chain is functioning, but not as smoothly as before," describing the logistics problem as a 'hit to interconnectedness.' Interconnectedness refers to a system where countries specialize in producing the foods best suited to their conditions and supply them to the global market at low costs. The main goal is to allow countries to consume food affordably.

Animal feed, fertilizers, and pesticides necessary for food production were not supplied on time, and lockdowns and movement restrictions imposed to prevent virus spread immobilized workers. There was also a shortage of transport workers to deliver these goods. This is why milk produced in the U.S. was discarded.

Chrissy emphasized, "There is enough food worldwide," pointing out that food is not lacking but is not supplied according to demand. Regarding this, he explained, "Rice and sorghum prices have risen somewhat exceptionally, but prices of corn, wheat, vegetable oils, and legumes remain stable," adding, "Most food prices are being maintained stably." He further clarified, "Currently, this is a health crisis, not a food crisis."

According to Bloomberg News, rice prices at the Chicago Board of Trade rose from around 12 cents in March to about 16 cents recently. Meanwhile, corn prices steadily declined this year, standing at 320.75 cents per bushel as of the 18th. Soybean prices were at 845 cents on the same day, maintaining a lower level since the end of March (887.25 cents).

Chrissy stressed that "international solidarity is key" to resolving supply uncertainties. He emphasized, "Governments must recognize the importance of keeping trade and borders open while taking all measures to slow virus spread." This is essential so that not only advanced countries struggling with shaken food supply chains but also millions of vulnerable people in low- and middle-income countries do not lose their lives due to food issues.

Regarding this, Chrissy criticized some countries for temporarily banning exports for food security reasons. Vietnam, the world's third-largest rice exporter, halted all exports since March, and Russia, the largest wheat exporter, has suspended exports until July. He pointed out, "What we learned from previous food crises is that export bans or export quotas on food do not help much," adding, "These measures artificially drive up prices and can encourage food hoarding."