How corona virus impacts the Food Industry 09-03-2020

The Corona virus initially transmitted from an exotic animal (most likely bats) to humans. At Chinese market places it is not uncommon to sell living animals and even eating them alive, including their organs, increasing the chance of transferal  of diseases to humans. After the transferal from animal to human, the virus could spread from human to human. The aforementioned is still an assumption , as the exact source of the corona virus has not yet been discovered and is subject to research.

In The Netherlands we assume the virus will not spread from animal to human, nor from the food that is eaten. The most important fact to remember about corona virus: the virus needs a living host to stay alive, it cannot stay alive in food products or object for a long time.

Which Chinese food suppliers are impacted by the corona virus?

An increasing amount of food producers are warning for shortages in food supplies because of the corona virus. For example, garlic and ginger are already difficult to buy in local supermarkets. Because of the financial impact to food producers, the prices of food is also expected to rise rapidly.

The problem with the corona virus is mostly logistics; most suppliers cannot ship any product as food hubs are closed due to the virus. Delays in shipments from harbors make it difficult to get products like pumpkin kernels (mainly produced in China) to Europe. European based pumpkin seeds suppliers that do not have sufficient stock could get in trouble.

Not only Chinese export is affected. Also Dutch companies and other European companies exporting to the Chinese market are affected. A Dutch company that cultivates exclusive crab saw their revenue drop with 50% in a matter of 1 month.

Facts and Fiction on the corona virus & food

Groceries, drugstores and other suppliers of soap, disposable face masks and gloves are having difficulties supplying and keeping sufficient stocks. Per example: some shops in Italy are without stock because of people preparing for the worst.

Because of  this worldwide uncertainty imported products like sesame seeds are delayed. At this time China cannot buy  the products they need, therefore countries like India keep their stock. Coca Cola already sent out a profit warning because of the corona virus, adding slow and lacking  ingredients supply as their main reason We can only imagine the damage inflicted on the corona beer brand due to their association with the corona virus.

Rumors of empty supermarkets and rising food shortages in continents like the USA and Europe are affecting consumers around the globe.

At Dipasa we hope the above contributes in answering some questions you may have regarding the corona virus and food safety. If you would like additional information, do not hesitate to contact our sales department at: sales@dipasa.nl