China’s industries, including food and agriculture, 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.
What’s more is, disruptions are being experienced across the entire supply chain, according to a report published by Rabobank.
However, quick and effective containment of the virus could lead to a rapid bounce-back, as experienced after the SARS outbreak in 2003.
The impact on the rest of Asia will largely occur via the reduction of food and beverage spending by Chinese if local transmission of the virus is kept under check.
The actual degree and associated projections of the virus’ impact are difficult to quantify, as the situation remains fluid. Rabobank will provide updates when we have new information.