COVID-19 Threatens Global Food Security as Well

Global Movement Restrictions Negatively Impact Logistics Systems, Raising Concerns Over Soaring Grain Prices
Some Middle Eastern Countries Increase Strategic Food Reserves

[Asia Economy Reporter Cho Young-shin] The novel coronavirus disease (COVID-19) is highly likely to have a negative impact on the global food supply, according to a report by Hong Kong's South China Morning Post (SCMP). Restrictions on logistics systems such as ports may cause supply shortages, which could soon lead to rising grain prices.

On the 31st (local time), SCMP cited a recent announcement by the United Nations Food and Agriculture Organization (FAO) reporting this. The FAO warned, "Due to global movement restrictions, logistics systems (supply chains) such as the shipping industry have begun to be affected," adding, "Supply chain collapse could have a fatal impact on food issues." Cases of export restrictions on major grains such as rice and wheat have already occurred.

Song Guochang, a professor at the School of Economics and Management at Tongji University in Shanghai, China, said, "Due to export restrictions by major grain-exporting countries and supply chain disruptions, food prices could surge," and added, "Countries where grain and other food cultivation is impossible may face food security issues."

In fact, Vietnam, the world's third-largest rice exporter, recently announced plans to halt new grain export contracts. Thailand also temporarily banned exports of chicken and eggs, whose prices have surged. As a result, Hong Kong, which imports 80% of its rice from Thailand and Vietnam, is imposing purchase restrictions, SCMP reported.

The newspaper also reported that China could face difficulties in food supply and demand. While China is self-sufficient in rice and wheat, it relies on imports for certain crops such as soybeans. China uses soybeans as livestock feed, and its soybean self-sufficiency rate is below 20%. China imports soybeans from the United States, Brazil, and Argentina. If the global logistics system collapses, prices of imported crops could surge.

Concerns over food shortages have led some countries to enact laws. The United Arab Emirates (UAE), where crop cultivation is difficult, has enacted legislation to secure strategic food reserves in preparation for the prolonged COVID-19 pandemic. This law allows for the management and supervision of food-related distributors' inventories to ensure stable food supply in cases of natural disasters, national crises, or other emergencies.

The law also includes provisions that impose imprisonment or fines up to 2 million dirhams (approximately 700 million Korean won) on distributors who engage in hoarding food beyond a certain scale. The UAE, with its desert climate, imports more than 80% of its food. Saudi Arabia, a Middle Eastern country, announced that in addition to a strategic reserve of 1 million tons of wheat, it will import an additional 1.2 million tons.

This content was produced with the assistance of AI translation services.