The COVID-19 pandemic exposed vulnerabilities in the food supply chain, and a new research paper from Resilience360 says investments in labor-saving technology will be needed over the long-term to counter rising costs.
“The pandemic has caused a shift toward a greater need for efficiency in production amidst the long-term realities of staff capacity shortages and an unpredictable regulatory environment,” Jena Santoro, supply chain risk intelligence executive with Resilience360, said in a news release. “The uncertainties of virus transmission have led many countries to adopt food protectionist policies, which has disrupted end-to-end supply chain continuity. It has increased the global price of food and beverage products and has made the global food supply more inaccessible.”
She said the cost of doing business has increased with the employment of health measures to contain the spread of COVID-19.
“The pandemic has exposed the vulnerabilities of an industry historically reliant on manual labor,” Santoro said in the release. “In the long-term, companies can introduce more automation and robotics technology in their supply chain to address labor shortages to mitigate the impact of future crises.”
The pandemic has caused consumers to demand prepared food to consume on-the-go and to look for individually packaged food products when they shop at the supermarket.
“This has created a window of opportunity for plastics manufacturers but has reversed course on ridding the environment of single-use plastics,” she said.
Restrictions in passenger air travel have impacted air freight considerably, reducing options for perishable products such as fruits and vegetables. Air freight capacity has declined over 80% on routes between Europe and Latin America, according to the research.
Long-term recommendations from the report are:
- Diversify sourcing of products;
- Adapt to shifting consumer behaviors and packaging demands;
- Prioritize investment in automation; and
- Invest in technologies that enhance the shelf life of produce and other foods.
The 16-page report, “COVID-19 Exposes Vulnerabilities in the Global Supply Chain” is available online.
