Quantzig has announced the completion of its latest article that lists 5 hypotheses illustrating the impact of COVID-19 on the food supply chain in the US.
COVID-19 is spreading like wildfire across geographies, especially in the United States which is now declared as one of the worst-hit countries in the world. Its impact is widespread and many low- and middle- income countries are witnessing a gradual rise in the number of positive cases and are imposing rigorous lockdowns and travel bans to flatten the curve. While the coronavirus impact has been felt by all aspects of the economy, the US food supply chain is no exception. Quantzig's supply chain analytics experts suggest that the food supply chain is one of the hardest-hit segments and is expected to lead to acute shortages of certain product categories owing to the ongoing supply chain disruptions.
“When a crisis impacts the supply network either at the source or the destination, it will have a repercussive effect on the global supply chain and interrupt both the upstream and downstream production processes. Notably, this hierarchical nature has resulted in increased exposure to disruptions in the case of the COVID-19 outbreak,” according to Quantzig’s food supply chain analytics experts.
Impact of COVID-19 on the US Food Supply Chain
The United States is also one of the major regions that have been bought to a standstill due to the impact of the crisis. Our analytics experts have been analyzing the impact of the crisis in the US by closely following the transformations in business structures and operating models of key players across industries. Based on our interaction with market leaders and decision-makers in the US food industry, we’ve come up with 5 hypotheses that illustrates the effect of COVID-19 on the US food supply chain.
- Economic impact
- Direct impact on the source of food production
- Rise in prices of food products
- Impact on food retailers
- Irreversible impact on the downstream food supply chain