Description of recent events(covid-19): Another recent event that has cause disruption in the global food supply chain is the covid19 pandemic. The covid-19 pandemic started as an outbreak in China in late 2019 until it became a global pandemic and a major public health crisis in the second quarter of 2020. To prevent the spread of the virus, governments around the world mandate lockdowns that slowed down business activities over the world. the COVID-19 Pandemic is currently the culprit of most supply chain bottlenecks and disruptions currently accumulating around the globe. Not only did the Pandemic contribute to the reduction of industry labour, but it also forced the closure of many integral ports worldwide, which caused a sharp increase in backlogs and delays. These delays eventually cause a rippling effect where disruptions trickle down throughout the chain and accumulate. So how is covid-19 disrupting the supply chains Some examples are: - - - - Harvests: As spring arrives, crops are rotting in the fields. Europe’s asparagus growers, for instance, are dramatically short of staff, with migrant workers from Eastern Europe unable to come to their farms due to border restrictions - or simply afraid to risk infection. Logistics: Food transport, meanwhile, is steadily turning into a logistics nightmare. Where produce does get harvested, border controls and air freight restrictions are making international transport of fresh goods extremely difficult and expensive. Processing: Food processing plants are scaling or shutting down due to containment measures or staff shortages, with their suppliers scrambling to adjust their output. Go-to-market: Companies that normally sell a significant portion of their output through out-of-home channels (for example soft drink producers) are seeing their sales slashed. Sourcing: Supermarkets, while scoring stellar sales figures, are understaffed and underdelivered. Because of sourcing problems, products based on wide range of ingredients are becoming increasingly difficult to make and are therefore disappearing from store shelves. So how does all these impact Singapore? Singapore is highly dependent on food imports and has an open economy that exposes it to volatile global markets, so it is acutely vulnerable to the effects of the pandemic on other countries. As a result of COVID-19, many countries have imposed different types of temporary export measures such as export restrictions and liberalisations. Affected products include personal protection equipment (e.g. masks, gloves), pharmaceutic products, hand sanitizer and food, among others. Supply chain disruptions and government decisions to restrict exports or stockpile commodities have raised concerns as they can have serious impacts in terms of food security. Singapore reached out to its trade partners very quickly and called for international commitments to ensure supply chain connectivity. Even then, COVID-19 challenged the efficacy of the city state's diversification and stockpiling strategies. While the government took both pre-emptive and reactive measures to combat disruptions of food imports, the island nation was not fully sheltered from disruptions of international supply chains. Prices of imported foods increased, affecting food prices for end consumers. According to the Department of Statistics Import Price Index of May 2020, monthly prices of imported food items were consistently 3–4% higher in February to May 2020 than in the same period the year before. To some extent, these higher prices were absorbed by retailers and food service establishments, before being translated into food inflation of 2.2% year-on-year for end consumers. his contributed to initial panic buying that created chaos on the retail front and temporarily left shelves empty. Although these problems have been resolved, the physical accessibility of food remains vulnerable to the volatility of public purchasing patterns. Economic accessibility has also been threatened; the prices of some commodities have risen with supply chain disruptions in other countries and fluctuations in international trade connectivity. Falling incomes also exacerbated food insecurity for vulnerable populations.
