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COVID‐19 and fresh produce markets in the United States and China

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  • Metin Çakır
  • Qingxiao Li
  • Xiaoli Yang

Abstract

This paper examines the impact of COVID‐19 on fruits and vegetable prices in the United States and China in a difference‐in‐differences framework. Our main results show differing impacts of the pandemic on the U.S. and Chinese wholesale prices. We conclude that despite the unprecedented disruptions, the U.S. produce industry remained intact. However, the long‐run effects could be mixed. We conjecture that the industry would stay resilient in the long run by having gained practical know‐how. Nevertheless, potential structural changes, such as changing household expenditure patterns due to income loss and increasing concentration in the food service market, could hurt the industry.

Suggested Citation

  • Metin Çakır & Qingxiao Li & Xiaoli Yang, 2021. "COVID‐19 and fresh produce markets in the United States and China," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 341-354, March.
    • Handle: RePEc:wly:apecpp:v:43:y:2021:i:1:p:341-354
    DOI: 10.1002/aepp.13136
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    References listed on IDEAS

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    1. Metin Çakır & Xiangwen Kong & Clare Cho & Alexander Stevens, 2020. "Rural Food Retailing and Independent Grocery Retailer Exits," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1352-1367, October.
    2. Charles Courtemanche & Art Carden & Xilin Zhou & Murugi Ndirangu, 2019. "Do Walmart Supercenters Improve Food Security?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 177-198, June.
    3. Saksena, Michelle J. & Okrent, Abigail M. & Anekwe, Tobenna D. & Cho, Clare & Dicken, Christopher & Effland, Anne & Elitzak, Howard & Guthrie, Joanne & Hamrick, Karen S. & Hyman, Jeffrey & Jo, Young &, 2018. "America’s Eating Habits:Food Away From Home," Economic Information Bulletin 281119, United States Department of Agriculture, Economic Research Service.
    4. Fang, Hanming & Wang, Long & Yang, Yang, 2020. "Human mobility restrictions and the spread of the Novel Coronavirus (2019-nCoV) in China," Journal of Public Economics, Elsevier, vol. 191(C).
    5. Timothy K.M. Beatty & Benjamin Senauer, 2013. "The New Normal? U.S. Food Expenditure Patterns and the Changing Structure of Food Retailing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 318-324.
    6. JIA, Xiangping & HUANG, Jikun & XU, Zhigang, 2012. "Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China," China Economic Review, Elsevier, vol. 23(3), pages 665-674.
    7. Ellen Goddard, 2020. "The impact of COVID‐19 on food retail and food service in Canada: Preliminary assessment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(2), pages 157-161, June.
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    Cited by:

    1. Lotanna E Emediegwu & Obianuju O Nnadozie, 2023. "On the effects of COVID-19 on food prices in India: a time-varying approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 232-249.
    2. Nishant Saravanan & Jessica Olivares-Aguila & Alejandro Vital-Soto, 2022. "Bibliometric and Text Analytics Approaches to Review COVID-19 Impacts on Supply Chains," Sustainability, MDPI, vol. 14(23), pages 1-33, November.

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