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

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  • 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
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
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    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. Azzam, Azzeddine & Gren, Ing-Marie & Andersson, Hans, 2023. "Comparative resilience of US and EU meat processing to the Covid19 pandemic," Food Policy, Elsevier, vol. 119(C).
    4. 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.

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