The on-going coronavirus pandemic has focused the world’s attention on the less availability of respiratory masks and ventilators in many nations. However, far less attention has been given to other pandemic related shortages lurking over the horizon, mainly food supplies.
As the coronavirus situation threatens to weaken the global supply chain, nations worldwide are putting their best feet forward to tackle the pandemic-driven shortages. Recently, China, the 2nd biggest economy in the world, has reportedly ramped up its efforts to stock up food and oil supplies amid pandemic. The nation is taking advantage of decreasing crude oil prices even before the COVID-19 pandemic disrupted supplies.
Sources cite that the Chinese government is worried about further repercussions of the coronavirus outbreak as it continues to spread across the world. Movement restrictions and lockdown measures aimed at reducing the coronavirus have triggered logistics transportation bottlenecks.
This has put significant stress on global supply chains and may cause food shortages in both developed as well as emerging economies. The pandemic has highlighted concerns related to energy security and food in China.
Tweeting about the current situation, Arlan Suderman who is Chief Commodities Economist at INTL FCStone stated that Chinese people are panicked that on-going pandemic would eventually close the world’s ports, making it difficult for the nation to import. So, the nation is focused on stocking supplies while they are available and cheap, added Suderman.
According to sources, China is the world’s biggest consumer of pork, a staple protein for the nation. In the first quarter of the year, meat imports including beef, pork, poultry in the nation increased 82% compared to the last year. Given the current food inflation in the country, China seems to be taking proactive steps to ensure crucial food supplies during this critical time.