Awaiting Significant Disruptions Due to COVID-19By Jan Hogewoning | Tue, 03/17/2020 - 15:11
The virus outbreak has so far had a mild effect on the operational side of supply chains of Mexican agricultural goods. However, people are already avoiding restaurants and rushing to supermarkets, leading to drops, and spikes, in demand for particular goods. There are no signs yet of an impending plan to shut down large urban areas as seen in the US and Europe. The government is considering measures to cushion the impact on the economy.
Meanwhile, prices of agricultural products around the world continue to be hit by the COVID-19 outbreak, generally seeing a rise as supply chains are delayed or cut off.
Ready for more? Here are the week’s most important headlines!
Focus on Mexico
In Nuevo Laredo, women working at a large tortilla plant used 10,000 tortilla wrappers to spread awareness and information on hotlines for domestic abuse.
The lower chamber of the Canadian parliament approved USMCA before suspending operations due to COVId-19 measures. The next step is approval by the Senate.
China and Regional Trade
Traffic jams of cargos ships at Chinese ports have eased after workers return but costs of refrigerated containers have soared by up to 200 percent.
Chinese authorities are waiving construction fees for international cargo until June 30 to boost business recuperation.
China has agreed to soften its zero-tolerance policy on residues of growth hormones in meat to make US beef imports easier. The country is now reconsidering residue limits for three hormones used in beef. The move is part of the Phase 1 trade deal with the US.
Market Prices and Stocks
Plummeting oil prices and the COVID-19 virus outbreak caused raw-sugar futures to fall 18 percent to 13₡/lb. This was also fueled by adverse weather conditions for sugarcane farmers in India and Thailand.
The price of onion has multiplied tenfold in South Eastern Asia, with garlic also seeing a major spike. Disruptions of exports from China are particularly impacting Indonesia and Malaysia, where restaurants are forced to take dishes off the menu.
Supermarket stocks have seen sudden demand for the first time in years as COVID-19 spreads rapidly around the globe.
Monsanto secretly funded academic studies that indicated the banning of its controversial glyphosate weed killer Roundup would have severe impacts on farming and the environment.These studies were used by the National Farmers’ Union to lobby against the ban.