The whole world is suffering from deadly coronavirus pandemic and it is not limited to health only. The loss is higher in small businesses, industry, and even the labor sector which are by far the hardest hit by the lockdown and suspension of operation.
The food industry is suffering from a 22% loss as major parts of the world have imposed lockdown. Bakery and beverage companies are in a huge loss and their sales have been dropped drastically, leaving many of them on the verge of bankruptcy.
The latest barometer analysis on the food industry as per the effects of coronavirus has marked a 22% loss in global food turnover.
The trade group Association Nationale des Industries Alimentaires (ANIA) from France has been studying the global market ever since the coronavirus lockdown was imposed. The first of this series was published in March when coronavirus cases were on a hike, ANIA called the food sector to be still standing firmly. Throughout the period, the food companies made sure that there is no shortage of food anywhere and the supply chain is not affected.
The second report came during mid-April when business activities and operations were analyzed for their cost spent on maintaining them during the lockdown.
Now it has published the third edition of their report on May 12th, revealing that the food sector has been significantly hit by the coronavirus pandemic and the sales are reduced. In particular, it mentioned that the bakery and beverage industry is going in a complete loss.
This report was prepared after inviting different companies for a cohort study, organized by ANIA through a questionnaire. The data from 600 companies were collected between May 4th to May 7th and it included 23% of small businesses, 57% of SMEs, and 17% intermediate level companies. Only 3% of the companies were big businesses.
Among all these companies, 22% were from the meat industry, 11% were from fruit and vegetable industry, 9% of them were dairy companies, 16% were dealing with grains, 10% were sugar, and coffee/tea industries, 8% were of ready to eat meal preparing companies, 15% were beverage companies and 16% includes other types of food.
More than 70% of the participants in this survey reported having a decline in sales during the coronavirus lockdown period. Nearly 22% of the companies reported more than 50% loss of their goods in comparison with regular sales.
All small companies were hit the most, among all cases, 70% to 80% were small businesses for which losing 50% or more of their business means almost an insolvency. The report also revealed that the inflation rate on certain food products should be taken seriously at this time. If the inflation rate exceeds, many companies would be forced to shut their operation.
ANIA says that; “The price increases for raw materials, transport, maintenance or employee protection equipment have increased production costs by an average of 9% since the start of the crisis,”
Regarding reporting staff members, most of the businesses reported a decline in their services because of the decrease in manpower. The staff attendance rate was 12% in April which dropped to 8.8% in May.
To conclude, the survey emphasized planning and following the new policies related to food manufacturing, distribution, and sales. The revival of the food industry would not be a one jump game, it might take weeks or maybe months to get over the loss caused by coronavirus pandemic.