Coronavirus and the Impact on F&A

The coronavirus pandemic is impacting various food & agribusiness sectors in various ways. This page aims to provide updated sector- and region-based analysis by our global team of F&A analysts.

Cross-Sectoral

Australia Agribusiness Monthly April 2020 (2 April)

This monthly update provides a market outlook and Covid-19 update for dairy, beef, sheepmeat, and other key commodities, and gives an overview of what developments to watch in the weeks to come.

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New Zealand Agribusiness Monthly April 2020 (2 April)

This monthly update provides a market outlook and Covid-19 update for dairy, beef, sheepmeat, and other key commodities, and gives an overview of what developments to watch in the weeks to come.

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Impact of Coronavirus on Indian Food & Agribusiness (1 April)

The spread of the coronavirus started relatively late in India, compared with other countries. With a 21-day lockdown announced by government, the impact on Indian food & agri has started. The impact varies in the different sectors. 

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Brazilian Agribusiness: Facing the Coronavirus Crisis in the Field (27 March)

As the world´s leading exporter of a number of agricultural commodities, Brazil´s capacity to maintain production and exports during the coronavirus crisis is a key influence on the global markets for these commodities and a key concern across the supply chain. This brief report focuses on the operational challenges that brings.

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Coronavirus in Europe: Foodservice Shutdown Impacts All F&A Sectors (26 March)

As of mid-March, most European governments have banned eating out, and this disruption to the foodservice industry affects the entire food & agribusiness (F&A) value chain. In this report, Rabobank gives an overview of the consequences of this disruption for all European F&A sectors, which differ from sector to sector, country to country, and product to product.

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Podcast: Shanghai Talking – A Local View of China’s Recovery From Coronavirus (18 March)

Sandy Chen, Rabobank’s Senior Dairy Analyst in China, talks to Tim Hunt about the impact that coronavirus has had on the economy and food sales and how long recovery will take.

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Further Assessing the Impact and Implications of Coronavirus on China's F&A (5 March)

Coronavirus-related supply chain disruptions have eased somewhat, but still remain. We expect the impact of disruption to spread across the whole value chain and to last for at least another four months.

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Podcast: Slow Recovery – Coronavirus Will Extend the Feed-Demand Hangover (3 March)

China G&O analyst Lief Chiang and ACMR analyst Michael Magdovitz discuss the spread of coronavirus and the threat it poses to already fragile Chinese and global feed demand. Lief and Michael then consider the implications of coronavirus on China’s 'phase-one' trade deal compliance, US summer plantings, and CBOT Corn and Soybean prices through 2020.

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Podcast: Coronavirus - How Worried Should We Be? (6 February)

Tim Hunt and Michael Harvey explore the current and potential impacts of coronavirus on Australia and New Zealand's F&A industries.

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Recent Coronavirus Impacts on Chinese F&A (6 February)

China’s industries, including F&A, are bearing the immediate brunt of the coronavirus outbreak. The overall impact – which is most severe for foodservice and on-trade channels – could be more serious and longer-lasting if the virus is not contained within Q1 2020. Disruptions are being experienced across the entire F&A supply chain. However, quick and effective containment of the virus could lead to a rapid bounce-back, as experienced after the SARS outbreak in 2003.

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Animal Protein

Coronavirus Impacts Chinese Animal Protein Markets (21 February)

Coronavirus (or Covid-19) outbreaks have had a sudden and unexpected impact on Chinese people’s lives and China’s economy.

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Beverages

Beverages in the Time of Covid-19 (20 March)

The first cases of coronavirus in the US were recorded in January 2020, but the dramatic changes in consumer behavior did not begin until March. Events, travel, schools, and professional sports have come to a standstill, and there are widespread bans on dining in restaurants and bars in many cities and states.

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Covid-19's Impact on Beverages in the Off-Premise and On-Premise (20 March)

In this article we break down how coronavirus so far has impacted the US beverage landscape by channel: off-premise and on-premise. We have also released a companion article, “Initial Impacts of Covid-19 on the US Beverage Industry” that offers more detail on the unique challenges that each beverage category is facing in the US.

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Coronavirus Deals a Painful Blow to China's Wine Industry (12 March)

The Chinese wine industry experienced a tough year in 2019, and was hoping for a fresh start in 2020. However, the coronavirus has taken a dramatic toll on consumption, and disrupted the entire value chain of the wine industry. If the situation persists for the next few months, the wine industry will be structurally damaged. On the other hand, the current crisis also brings the wine industry an opportunity to rethink strategies.

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Consumer Foods

Impact of Coronavirus on European Foodservice (12 March)

The coronavirus outbreak will impact foodservice revenues in the short term in China. Singapore, Thailand, and Vietnam are the most vulnerable markets outside of China. Foodservice players could face challenges such as supply disruptions and lack of personnel. Players will also have to consider strategic changes in the way they operate if they want to retain clients and secure long-term growth.

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Podcast: The Impact of the Coronavirus on Packaged Food and Foodservice in the Western Hemisphere (12 March)

The virus is now leading to disruptions in Europe (e.g. a lockdown in Italy) and North America. Maria Castroviejo and Cyrille Filott, co-host and host of Consumer Foods-to-Go, provide their initial thoughts on the virus’s current impact on foodservice and packaged food in the western hemisphere, as well as what structural shifts we might see in the future. A warning: the R-word will be used.

 
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Slower Growth Prospects as Coronavirus Hits Foodservice in Southeast Asia (28 February)

While the evolving nature of the situation and the indirect impact that tourism has on the overall economy makes projections challenging, with these estimates now available, we can provide a preliminary view of how Southeast Asian foodservice growth is likely to be impacted in 2020.

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Foodservice Industry Continues to Suffer From Coronavirus Outbreak (19 February)

The coronavirus has had a huge impact in China, and with the virus still not under control, the foodservice industry will continue to suffer. Therefore, it is very likely that 2020 will be a difficult year.

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Coronavirus Brings Risks for Foodservice (31 January)

The coronavirus outbreak will impact foodservice revenues in the short term in China. Singapore, Thailand, and Vietnam are the most vulnerable markets outside of China. Foodservice players could face challenges such as supply disruptions and lack of personnel. Players will also have to consider strategic changes in the way they operate if they want to retain clients and secure long-term growth.

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Dairy

Coronavirus Impact on the Chinese Dairy Sector: an Initial Assessment (14 February)

The outbreak of coronavirus is disrupting the entire dairy supply chain in China. Although, for now, we have only limited information and anecdotal evidence, Rabobank assesses the impact on the Chinese dairy market because the potential effects on the global dairy commodities market should not be ignored. The situation remains fluid, and Rabobank is monitoring the developments closely.

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F&A Supply Chains: Packaging & Logistics

Lockdown: Supply Chains in the Midst of Coronavirus Outbreak (24 February)

Containment measures to avoid the further spread of the coronavirus are affecting Chinese and global logistics supply chains. China’s domestic transport sector is disrupted, and global logistics operators are seeing their volumes reduced. It will be a challenge to contain the virus with as little interruption to supply chains as possible and to revert to normal quickly.

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Paper Jam: Coronavirus's Impact on Paper Packaging (13 February)

The outbreak of coronavirus (designated as Covid-19 by the WHO) has impacted the paper packaging industry in terms of reduced inventory and supply of paper board, logistics interruptions, an absent workforce, as well as increased costs. However, we also see some potential opportunities emerging for paper packaging in the future.

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Farm Inputs

Podcast: Coronavirus Plants Ag-Chem Concerns Ahead of the Winter Crop (5 March)

Coronavirus has created something of a 'perfect storm,' threatening to disrupt Australian agrochemical supply ahead of the winter crop. Wes Lefroy and Cheryl Kalisch-Gordon discuss where some pressure points may lie ahead of crop planting.

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Coronavirus May Accelerate Phosphate Fertilizer Industry Reforms (21 February)

A sudden coronavirus (or Covid-19) outbreak has severely affected phosphate production in China. Phosphate fertilizer prices are likely to rise, due to product shortages and higher production costs. However, downstream demand is uncertain and export market pressures remain high, both of which put China’s phosphate fertilizer industry under greater pressure in 2020. Manufacturers should look for opportunities to gain new growth amid the difficulties.

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Fresh Produce

Coronavirus Concerns in the Global Fresh Produce Sector (30 March)

Covid-19 has been rapidly spreading across the globe. Measures to avoid the further spread of the virus are affecting the global fresh produce industry via demand, labor availability, logistics, and the general state of the economy. But the potential effects will differ from day to day and from company to company.

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Covid-19 Update: Retail Fresh Produce Demand Soars, but Landmines Remain (27 March)

The Covid-19 situation has created a surge in fresh produce demand in retail grocery, but challenges around foodservice, logistics, macroeconomics, and labor availability pose ongoing threats.

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Floriculture Demand Collapses Dramatically Under Coronavirus Pressure (27 March)

 Measures to prevent further spread of the coronavirus are affecting the global ornamental sector via demand, logistics, supply chains, and the general state of the economy. Potential effects will differ from day to day and are related to the specific characteristics of certain flowers, plants, companies, and countries. 

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Grains & Oilseeds

Coronavirus Hits Chinese Soy Supply Chain, Lowering Consumption and Import Needs (27 February)

The outbreak of coronavirus (designated as Covid-19 by the WHO) will hit Chinese soy oil and soymeal consumption, primarily in Q1 and early Q2 2020. Barring an extreme escalation of the epidemic, both are expected to register a robust rebound in 2H 2020.

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