Research Report: Impacts of COVID-19 on the Global Agri Community

Original research based on analysis of survey responses from 291 agriculture professionals around the world

COVID-19 Response and Impacts on Agriculture

Among the many challenges thrown down by the global COVID-19 pandemic, one has been to the food supply chain. In Europe, the challenge presented itself as a shift in demand from hotels and restaurants to increased demand for products in supermarkets. In some cases, such as flour, this meant there was not always enough of the required packaging size. But overall, the supply chain has been maintained, from farmers and growers, through to supermarket staff who have kept working while many countries temporarily shut down large parts of their economies.

Informa Connect Life Sciences conducted a survey (14-22 April 2020) of professionals from across the agricultural supply chain, asking those involved in the industry their experiences of the COVID-19 crisis, its impact on their sector, and their thoughts for how it will shape the industry in the years ahead. This report details the results of the 291 responses.

Respondent organization

Size of organization

Regions respondents are based

Product types respondents work with

Introduction

To introduce the report, Luke Hutson, Chief Editor of New Ag International, explores some of the key takeaways.

Respondents
Respondents were from a broad section of the plant nutrition and crop protection industry. 39% of the respondents said crop protection/plant nutrition/ fertilizer manufacturing was their core business, while 32% identified agribusiness/CRO/agri service provider as a core business.In terms of product types, 64% of respondents said fertilizers/ biostimulants/plant nutrition best described their product type, while 70% said it was agrochemicals/ biocontrol/plant protection (in multi-choice question). Precision ag/ag tech was selected by 22%.Impact on farming community
When asked about the impact of the virus on farming community, more than 200 respondents wrote open answers. These can be grouped as follows:

For the some the impact was neutral, or yet to be seen.

For others, the impact was more immediate for the coming season and responses included the restrictions in meeting customers, reaching out to farmers to train in best practices, reduced working hours of team members.

Demand side was down due to the closure of hotels, restaurants and hospitality.

Logistics also featured with problems around product delivery, the arrival of inputs (such as imported active

ingredients), and delayed payments. In terms of harvesting, some respondents cited a shortage of labour. Depending on location, there can be restrictions on the farm workers working in close proximity.

But there were positive comments with agriculture classified as essential industry in some countries and, in general, comments about cities still being provided with food.

The impact on supply chains
Respondents were asked how their supply chain had been impacted. Answers were detailed. Some centred on the delay to the delivery of raw materials, owing to plant closures in Asia where active ingredients were manufactured. This impacted many countries, and was highlighted by a respondent based in India. One reply described how cargo trucks arriving at a production plant were sprayed in liquid disinfectant before entry.Logistical constraints were often quoted, such as labour, where employees were not able to travel to warehouses. Limitations on labour also slowed production rates, particularly when minimum staff levels for safe operation was a consideration. Transport issues were also regularly cited.
Digital strategy for communication
Respondents were asked about the digital strategy they were working on to communicate to customers.The replies were wide ranging and largely covered the range of tools already in use. Not unexpectedly webinars were frequently mentioned, so too mobile phone apps, and video conferencing. Perhaps more surprising was a virtual field day.Some did say that they their communication was already largely digital. Emails and social media were cited as part of a communication strategy, but so too was a personal phone call to farmers and business contacts. Regulatory changes
Respondents were asked what changes in regulations and laws they expected in response to the coronavirus pandemic. The answers varied from none, particularly in regard to nutrition and crop protection, but there were more suggestions for sanitary controls to prevent future outbreaks. Work challenges
The final question tried to get a flavour of the new challenges and/or changes by COVID-19 and associated measures most impacting respondents at the moment.Social confinement, otherwise known as ‘lockdown’, was frequently cited. Working from home, and striking the right balance for work/family life. Many responses focused on the digital way of working.But from a market perspective the decrease in the price of commodities was cited, since this will impact farmer incomes and their ability to pay for inputs, particularly in the near future. Another respondent thought this would make farmers more risk averse.Conclusion
This survey has tapped into more than just the respondents' view of the market. It has drawn from their industry experience – and working life – at a time when many parts of the world have been responding to the coronavirus pandemic. With normality starting to resume in many parts of the globe, this survey provides some insight into how the food chain was tested and challenged, from many respondents who were involved in the effort to keep delivering food to where it was needed.Luke Hutson is Chief Editor of New Ag International

Where are you currently working?

The majority of respondents - 68% - were working at home full time at the time of the survey (14-22 April 2020). This figure is highest for North American respondents at 74%, versus just 59% of those based in Africa.

How has the virus impacted the farming community? (Selected responses)

"Huge amount of pressure on food supply. Covid's effect is going to be everlasting, with major impacts on social instabilities etc. But where there is crisis there is also opportunity."
"Closure of the hospitality industry (hotels, restaurants) impacting food distribution and demand."
"This industry is classified as an essential service, and as such a large part of the agricultural industry remain unaffected."
"Crops are not being distributed quickly and are going bad."
"Increased demand for food - prices for some agricultural commodities rose - export soared (Brazil, for instance, doubled soybean export)"
"International trade and inland distribution of fertilizers is impacted by labour availability."
"Low impact on crop production, the main issue is related to export which has been limited due to Covid restrictions."
"Reduced commodity prices"
"At this point is more or less neutral. Negative impact will come in the next 6 months or 1 year, when we begin suffering consequences of loss of trust."
"Due to ongoing self quarantine and social distances, farmers are unable to participate fully to weekly meetings which in most cases are educative for farming expansion."

How has the virus impacted your supply chain? (From 1= No Impact, to 5 = Significant Impact)

92% of respondents say that COVID-19 has had some impact on their supply chain, with almost a quarter rating it as a 'significant'.

In what ways has your supply chain been impacted? (Selected responses)

"Certain nutritional and plant growth stimulating raw materials used in formulations imported (mainly from China) getting scarce or unavailable and also more expensive."
"All cargo trucks arriving to our plant have to be sprayed with 84% Liquid Disinfectant and 75% alcohol disinfectant prior to entry."
"It is the supply chain of my clients that has been impacted. As their income decreases they invest less into improvements that they would need to stay or become internationally involved."
"Can’t get into contact with customers."
"Closure of airport channels, customers from abroad closing down, mistrust of the commodities from external sources lack of raw materials for production, lockdowns locally and internationally, harassment from authorities."
"Delay in logistics process especially from the port to the final consumer. And cancellation of dates of farm input deliveries due to these logistics constraints."
"Deliveries from China were stopped for several weeks and transport options are more limited since the virus arrived in Europe."
"High demand for key inputs has led to shortages or delays in supply. Disrupted international container freight schedules and missed ports have further exacerbated the situation. Airfreight costs and reliability are issues."
"Reduced availability of raw materials to make diagnostic materials - enzymes, master mixes, etc."

Are you working on a digital strategy to communicate to customers and the farming community during a time of social distancing?

59% of respondents are working on a digital strategy in response to lockdown and social distancing measures. This is highest in South America (76%) and Africa (74%) compared to Europe (49%) and North America (48%).

What is your digital strategy? (Selected responses)

"All relevant social media platforms are being used by us to reach out to customers."
"Audio and video calling and solution providing."
"Communicating to farmers and stockists mainly through WhatsApp groups."
"Creation of a tool to assist in the sale of the company's products to overcome the lack of direct and on-the-ground relationship with technical sales representatives."
"Distant learning, increased online communication, remote meetings."
"Email, phone and Zoom."
"Everyone on the team has a partner and we reach out together to each of our customers and distributors to check in on them."
"Our web site has more information and links to video."
"Virtual working within the staff team, increased social media offering and using social and digital channels to highlight the efforts within industry to ensure a reliable supply of safe, affordable food."
"We are advising farmers to use tablets to request for inputs."
"We use remote digital tools like MS Teams, which we use to contact selected farmers We also have an active participation on social media and other digital media."

What changes to regulations and laws do you expect to see in response to the coronavirus outbreak? (Selected responses)

"Accept a regional standard instead of a local one."
"Agricultural-based organisations should be supported in better ways to continue providing critical services to farmers. Increased funding to Tech4Agriculture projects."
"Change in import tariffs."
"Consider supply of agricultural INPUTS and output essential services."
"Farmers who the community and countries depend on for food should be considered for subsidies on prices and extended payment periods."
"In crop protection and nutrition, it is unlikely there will be any significant changes. In animal nutrition and health, human food chain safety assessments will likely become far more stringent with testing of animal products entering the food chain on a continuous basis."
"In the domain of fertilizers and especially biostimulants (new EU regulations drafting in course), I think that more drastic cautions should be requested for microbials (alive). Indeed, the
"It is important that fertilizers (as well as other key ag inputs) be recognized as essential goods to be available to farmers."
"Tight regulations on imported ag items including agrochemicals."
"Transportation regulations and packaging - we need additional hazard symbols (Coronavirus Hazard) on the goods. Disinfect before use."
"Increased protection of the functioning of the Single Market during crises. More power to the EU in crisis decision-making."
"Coordinated response. Food, other essential supplies, agricultural inputs and key workers including farmworkers must be able to cross borders. We need rapid reactions in future to ensure there are no issues. The farmers require direct support and access to liquidity if they are to keep producing for the summer. Most importantly, we need measures which can be adopted and implemented immediately to ensure the functioning of the EU Single Market. As much coordination as possible. Best-practice sharing between governments."