IDEAS home Printed from https://ideas.repec.org/a/bla/eurcho/v19y2020i3p13-19.html
   My bibliography  Save this article

Resilience and Vulnerabilities of the North American Food System during the Covid‐19 Pandemic

Author

Listed:
  • David Orden

Abstract

The coronavirus pandemic and consequent economic disruption have tested the resilience of the North American food system. The poorest Americans were put at risk of food deprivation as their incomes fell. Disruptions reverberated through the food supply chain as the pandemic escalated; meatpacking plants became disease hotspots. The Coronavirus Food Assistance Program (CFAP) provided US$ 16 billion of aid to farmers and ranchers based on falling prices. CFAP added to the counter‐cyclical safety‐net programmes legislated in 2018 and ad hoc support authorised for two years by the Trump administration. The CFAP support is reasonable in the context of the pandemic‐related economic collapse, but also raises concern about increased support tied to market conditions and current production, including support linked to unilateral US trade policies that have invoked retaliation by trading partners. As of early June, the hopeful scenario was that the worst challenges to the food system had passed. Grain and livestock inventories were relatively high and spring planting intentions were strong, but supply constraints in North America or internationally remained a risk. The pandemic has underscored the inherent fragility of an integrated world and the high stakes in the debate about globalisation that will inevitably follow. La pandémie de coronavirus et les perturbations économiques qui en ont résulté ont mis à l’épreuve la résilience du système alimentaire nord‐américain. Les Américains les plus pauvres ont été en danger de manquer de nourriture à cause de la baisse de leurs revenus. Les perturbations se sont répercutées sur la chaîne d'approvisionnement alimentaire à mesure que la pandémie s'intensifiait; les usines de conditionnement de viande sont devenues des foyers intenses de la maladie. Le programme d'aide alimentaire lié au coronavirus (PAFC) a fourni 16 milliards de dollars d'aide aux agriculteurs et aux éleveurs au titre de la baisse des prix. Le CFAP est venu en supplément des programmes de filets de sécurité anticycliques légiférés en 2018 et d'un soutien ponctuel autorisé pendant deux ans par l'administration Trump. L'aide apportée par le PAFC est d'un montant raisonnable dans le contexte de l'effondrement économique lié à la pandémie, mais soulève également des inquiétudes concernant l'accroissement du soutien fondé sur les conditions du marché et la production actuelle, y compris le soutien lié aux politiques commerciales unilatérales des États‐Unis qui ont entraîné des représailles de la part des partenaires commerciaux. Début juin, le scénario encourageant était que les défis les plus difficiles du système alimentaire étaient surmontés. Les stocks de céréales et de produits animaux étaient relativement élevés et les intentions de semis de printemps étaient fortes, mais les contraintes d'approvisionnement en Amérique du Nord ou à l’étranger demeuraient un risque. La pandémie a souligné la fragilité inhérente à un monde intégré et les enjeux importants du débat sur la mondialisation qui s'en suivront inévitablement. Die Coronavirus‐Pandemie und der daraus resultierende wirtschaftliche Einbruch haben die Resilienz des nordamerikanischen Lebensmittelsektors auf die Probe gestellt. Aufgrund von sinkenden Einkommen bestand für die ärmsten Amerikanerinnen und Amerikaner die Gefahr, sich nicht mehr ausreichend Lebensmittel leisten zu können. Als die Pandemie eskalierte, kam es zu Störungen in der Lebensmittelversorgungskette; unter anderem auch dadurch, weil Fleischverpackungsbetriebe zu Corona‐Hotspots wurden. Aufgrund fallender Preise erhielten Landwirtinnen und Landwirte sowie Viehzüchterinnen und Viehzüchter 16 Milliarden Dollar aus dem Coronavirus‐Nahrungsmittel‐Hilfsprogramm (CFAP). Das CFAP stellt eine Ergänzung zu den 2018 gesetzlich verankerten antizyklischen Sicherheitsnetzprogrammen und der von der Trump‐Administration für zwei Jahre genehmigten Ad‐hoc‐Hilfe dar. Die CFAP‐Hilfe ist vor dem Hintergrund der mit der Pandemie verbundenen Wirtschaftskrise vernünftig. Sie gibt aber auch Anlass zur Sorge über eine verstärkte, an die Marktbedingungen und die laufende Produktion gebundene Subventionierung. Dies schließt Subventionen in Verbindung mit der einseitigen Handelspolitik der USA mit ein, die bei den Handelspartnern Vergeltungsmaßnahmen hervorgerufen haben. Anfang Juni bestand noch die Hoffnung, dass der Lebensmittelsektor die schlimmsten Herausforderungen überstanden haben würde: Die Getreide‐ und Viehbestände waren relativ hoch, und es gab starke Absichten, im Frühjahr mit der Aussaat zu beginnen. Allerdings blieben Versorgungsengpässe in Nordamerika oder auf internationaler Ebene ein Risiko. Die Pandemie hat die Zerbrechlichkeit einer vernetzten Welt und die große Bedeutung der Debatten über die Globalisierung, die unweigerlich folgen werden, unterstrichen.

Suggested Citation

  • David Orden, 2020. "Resilience and Vulnerabilities of the North American Food System during the Covid‐19 Pandemic," EuroChoices, The Agricultural Economics Society, vol. 19(3), pages 13-19, December.
  • Handle: RePEc:bla:eurcho:v:19:y:2020:i:3:p:13-19
    DOI: 10.1111/1746-692X.12273
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1746-692X.12273
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1746-692X.12273?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Will Martin & Kym Anderson, 2012. "Export Restrictions and Price Insulation During Commodity Price Booms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 422-427.
    2. Brink, Lars & Orden, David, 2020. "Taking Stock and Looking Forward on Domestic Support under the WTO Agreement on Agriculture," Commissioned Papers 303559, International Agricultural Trade Research Consortium.
    3. Alan P. Ker & Ryan Cardwell, 2020. "Introduction to the special issue on COVID‐19 and the Canadian agriculture and food sectors: Thoughts from the pandemic onset," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(2), pages 139-142, June.
    4. Vincent H. Smith & Joseph W. Glauber, 2019. "The Future of US Farm Policy," EuroChoices, The Agricultural Economics Society, vol. 18(1), pages 42-48, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Margherita Bernabei & Silvia Colabianchi & Francesco Costantino, 2022. "Actions and Strategies for Coronavirus to Ensure Supply Chain Resilience: A Systemic Review," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    2. Brenda Cardoso & Luiza Cunha & Adriana Leiras & Paulo Gonçalves & Hugo Yoshizaki & Irineu de Brito Junior & Frederico Pedroso, 2021. "Causal Impacts of Epidemics and Pandemics on Food Supply Chains: A Systematic Review," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    3. Celal Cevher & Bulent Altunkaynak & Meltem Gürü, 2021. "Impacts of COVID-19 on Agricultural Production Branches: An Investigation of Anxiety Disorders among Farmers," Sustainability, MDPI, vol. 13(9), pages 1-18, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    2. Kym Anderson & Maros Ivanic & William J. Martin, 2014. "Food Price Spikes, Price Insulation, and Poverty," NBER Chapters, in: The Economics of Food Price Volatility, pages 311-339, National Bureau of Economic Research, Inc.
    3. Tangermann, Stefan, 2011. "Risk Management in Agriculture and the Future of the EU's Common Agricultural Policy," National Policies, Trade and Sustainable Development 320171, International Centre for Trade and Sustainable Development (ICTSD).
    4. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    5. Gheorghe Cristian Popescu & Monica Popescu, 2022. "COVID-19 pandemic and agriculture in Romania: effects on agricultural systems, compliance with restrictions and relations with authorities," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(2), pages 557-567, April.
    6. Noel Perceval Assogba & Daowei Zhang, 2020. "An Economic Analysis of Tropical Forest Resource Conservation in a Protected Area," Sustainability, MDPI, vol. 12(14), pages 1-12, July.
    7. Mingsong Hao & Chuntian Lu & Xi Zhou & Jing Xu, 2023. "How Agricultural Farmers Respond to Risks during the COVID-19 Pandemic: An Exploration through the Dual Social Capitals Approach," Agriculture, MDPI, vol. 13(2), pages 1-18, February.
    8. Čermák, Michal & Ligocká, Marie, 2022. "Could Exist a Causality Between the Most Traded Commodities and Futures Commodity Prices in the Agricultural Market?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4), December.
    9. Paolo E. Giordani & Nadia Rocha & Michele Ruta, 2012. "Food Prices and the Multiplier Effect of Export Policy," CESifo Working Paper Series 3783, CESifo.
    10. Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
    11. Christiane Baumeister & Lutz Kilian, 2014. "Do oil price increases cause higher food prices? [Biofuels, binding constraints, and agricultural commodity price volatility]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 29(80), pages 691-747.
    12. Balie, Jean & Strutt, Anna & Nelgen, Signe & Narayanan, 2018. "Infrastructure investments for improved market access in subSaharan Africa: A CGE analysis," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.
    13. Susanne Fricke & Lodovico Muratori, 2017. "Spatial price transmission and trade policies: new evidence for agricultural products from selected sub-Saharan African countries with high frequency data," Working Papers 5/17, Sapienza University of Rome, DISS.
    14. Risti Permani, 2021. "FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 192-221, January.
    15. Christophe Gouel, 2016. "Trade Policy Coordination and Food Price Volatility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1018-1037.
    16. Kornher, Lukas & Kalkuhl, Matthias, 2013. "Food Price Volatility in Developing Countries and its Determinants," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(4), pages 1-32, November.
    17. Elodie Maître d'Hôtel & Tristan Le Cotty & Thom Jayne, 2013. "Trade Policy Inconsistency and Maize Price Volatility: An ARCH Approach in Kenya," African Development Review, African Development Bank, vol. 25(4), pages 607-620, December.
    18. Götz, Linde & Goychuk, Kateryna & Glauben, Thomas & Meyers, William H., 2013. "Export Restrictions and Market Uncertainty: Evidence from the Analysis of Price Volatility in the Ukrainian Wheat Market," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150308, Agricultural and Applied Economics Association.
    19. Wenshou Yan, 2016. "Political Economy of Trade and Storage Policies Coordination, and the Role of Domestic Public Storage in the World Market," School of Economics and Public Policy Working Papers 2016-16, University of Adelaide, School of Economics and Public Policy.
    20. Wenting Wang & Longbao Wei, 2021. "Impacts of agricultural price support policy on price variability and welfare: Evidence from China's soybean market," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 3-17, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:eurcho:v:19:y:2020:i:3:p:13-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.