HOW THE PANDEMIC AFFECTED THE FOOD INDUSTRY, AND WAYS TO BOUNCE BACK IN 2021

KUALA LUMPUR, March 25 (Bernama) -- It’s been over a year since the pandemic appeared and its effects are still being seen in every sector and industry worldwide. Lockdowns, movement control orders, and other initiatives to curb the spread of the COVID-19 virus has severely impacted businesses, especially those dealing with food. Facility shutdowns, supply and production delays and disruptions in logistics have affected each stage of the food supply chain, from farm to table.

What’s more, consumer habits and attitudes have changed dramatically towards food consumption and safety. Facing a two-pronged battle, the food industry is tackling a never before seen challenge to keep meeting their production goals and customer demands.

How the pandemic has affected the food industry

Delays and Disruptions in Production and Distribution

With multiple lockdowns, strict social distancing and safety SOPs, the business operations of businesses has undoubtedly been affected. This has caused a myriad of problems. First, with the implementation of social distancing, the workforce is essentially reduced from full capacity to potentially less than 30% of the workforce.

Hence, a shortage in manpower which has resulted in production loss. Furthermore, strict district/border crossing regulations have caused transportation costs to rise, as well as increase holding times in warehouses, ports and docks. Not only do companies have to bear further costs, but the longer their products are held, the higher the risk of a pest infestation.

With the lower production and loss of goods due to pests, food retailers will in turn be affected, finding difficulty in obtaining goods, especially fresh produce to meet their customer demands.

Changing Consumer Habits

Consumers have also been severely impacted by the pandemic, and certain behaviours have been noted to increase during these times. The trend of home cooking/baking has seen a rise, as restaurants were closed or only open for takeaway and options were limited to those nearby. Hence, the demand for fresh produce increased as more people were actively spending more time in the kitchen preparing meals.

Not only that but consumers were paying more attention to food production, origins as well as food safety as a whole, and gravitated towards trusted brands while avoiding brands who came into the limelight due to unsanitary food production practices.

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