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COVID‐19 and Food Supply Chains

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  • Lauren Chenarides
  • Mark Manfredo
  • Timothy J. Richards

Abstract

The COVID‐19 pandemic exposed critical weaknesses in the US food supply chain. Faced with the near‐complete loss of the food service distribution channel, stories of wasted food, failing suppliers, and food shortages were common. We argue that the pandemic revealed a fundamental lack of resilience in the food supply chain that, while causing short‐term welfare losses, need not have happened, and resulted from a failure of vision rather than a market failure in the traditional sense. We present a model of supply chain flexibility, grounded in real options theory, that demonstrates how firms can increase shareholder value by maintaining flexibility across supply chains. We present an example from the US fresh produce industry (onions) to demonstrate our hypothesis.

Suggested Citation

  • Lauren Chenarides & Mark Manfredo & Timothy J. Richards, 2021. "COVID‐19 and Food Supply Chains," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 270-279, March.
    • Handle: RePEc:wly:apecpp:v:43:y:2021:i:1:p:270-279
    DOI: 10.1002/aepp.13085
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    1. Marta Wincewicz-Bosy & Adam Sadowski & Katarzyna Wąsowska & Zbigniew Galar & Małgorzata Dymyt, 2022. "Military Food Supply Chain during the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-22, February.
    2. Kamal Gosh & Santa Chowdhury & Debasish Chandra Acharjee & Abdullah-Al Mamun & Robin Ghosh, 2022. "Assessing the Economic Impacts of COVID-19 on the Aquaculture and Fisheries Sectors in Relation to Food Security: A Critical Review," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    3. Bina, Justin D. & Tonsor, Glynn T. & Schulz, Lee L. & Hahn, William F., 2022. "Regional and plant-size impacts of COVID-19 on beef processing," Food Policy, Elsevier, vol. 108(C).
    4. Arita, Shawn & Grant, Jason & Sydow, Sharon & Beckman, Jayson, 2022. "Has global agricultural trade been resilient under coronavirus (COVID-19)? Findings from an econometric assessment of 2020," Food Policy, Elsevier, vol. 107(C).
    5. Ejaz, Nauman & Mallawaarachchi, Thilak, 2023. "Disparities in economic achievement across the rural–urban divide in Pakistan: Implications for development planning," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 487-512.
    6. Bożena Kusz & Lucyna Witek & Dariusz Kusz & Katarzyna Chudy-Laskowska & Paulina Ostyńska & Alina Walenia, 2023. "The Effect of COVID-19 on Food Consumers’ Channel Purchasing Behaviors: An Empirical Study from Poland," Sustainability, MDPI, vol. 15(5), pages 1-17, March.
    7. Nuno Baptista & Helena Alves & Nelson Matos, 2022. "Scoping Challenges and Opportunities Presented by COVID-19 for the Development of Sustainable Short Food Supply Chains," Sustainability, MDPI, vol. 14(21), pages 1-22, November.
    8. Ebenezer Laryea & Amin Hosseinian-Far & Simon Derrick, 2023. "Climate Justice Implications of Banning Air-Freighted Fresh Produce," Logistics, MDPI, vol. 7(4), pages 1-18, November.
    9. Ramadas Sendhil & Kashish Arora & Sunny Kumar & Priyanka Lal & Arnab Roy & Ramalingam Jayakumara Varadan & Sivasankar Vedi & Anandan Pouchepparadjou, 2023. "Price Dynamics and Integration in India’s Staple Food Commodities—Evidence from Wholesale and Retail Rice and Wheat Markets," Commodities, MDPI, vol. 2(1), pages 1-21, February.
    10. Richards, Timothy J. & Rutledge, Zachariah, 2022. "Agricultural Labor and Bargaining Power," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322101, Agricultural and Applied Economics Association.
    11. Luciano Gutierrez & Guillaume Pierre & Maria Sabbagh, 2022. "Agricultural Grain Markets in the COVID-19 Crisis, Insights from a GVAR Model," Sustainability, MDPI, vol. 14(16), pages 1-13, August.
    12. Carter, Colin A. & Steinbach, Sandro & Zhuang, Xiting, 2022. "Global Shipping Container Disruptions and U.S. Agricultural Exports," Working Papers 320397, International Agricultural Trade Research Consortium.
    13. Carter, Colin A. & Steinbach, Sandro & Zhuang, Xiting, 2022. "Global Container Trade Disruptions and U.S. Agricultural Exports," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322364, Agricultural and Applied Economics Association.
    14. Anna Uliano & Marcello Stanco & Concetta Nazzaro, 2023. "Short Food Supply Chain and Resilience: An Analysis during COVID-19 Pandemic in Inner Areas of Campania Region," Sustainability, MDPI, vol. 15(17), pages 1-13, August.

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