Impact of the Covid-19 Outbreak on the Global Cassava Market-
The global cassava market is expected to witness a negative impact on its growth due to the worldwide spread of the novel coronavirus. The pandemic is still aggregating, and with the prolonged spread of the virus, the impact is also expected to intensify. Partial/complete closure of international borders, trade restrictions, nationwide lockdowns, and permitted functioning of production facilities at reduced capacity & workforce have led to the declining trade of cassava, mainly as a raw material. There has been a widening demand-supply gap in the cassava market due to the disruption of the supply chain and value chain. As per the Institute of Supply Management (ISM), more than 75% of the companies across the globe are witnessing disruptions in their supply chains. Similarly, food production in Italy is expected to register sluggish growth due to the closure of northern Italy, which accounts for nearly 52% of Italy’s food production. Both these factors have had a major impact on the trade and logistics of both raw materials as well as the final packed products. The functioning of processing plants in the food & beverage and textile industries, at 50% capacity, has lowered the demand for cassava ingredients, resulting in the declining sale of cassava in the application industries. However, vendors in the market are expecting no immediate impact on their growth, even though the revenues have been negatively impacted, at least during the first quarter of 2020.
The global pandemic has also led to the rise of a global economic recession as trade activities have reduced, and businesses are shutting down. To overcome the ongoing recession, the governments of various nations have directed the manufacturing industries to resume production with minimum workforce and adoption of various hygiene standards. It is a challenge for the developing countries to adopt the GFSI benchmarked food safety and quality programs, such as Safe Quality Food (SQF), Brand Reputation Compliance (BRC), and Primus GFS, along with existing Good Manufacturing Practices (GMP). Similarly, several developing nations are facing challenges during the pandemic, such as low availability of labor, lack of proper transportation and advanced storage infrastructure, and the reducing buying power of consumers.
The COVID-19 risk analysis conducted by MRFR includes several COVID-19 analysis pointers in its in-depth global cassava market report. The COVID-19 impact analysis platform provided by MRFR includes the impact of COVID-19 on businesses, several industries, logistics, and financial/economic impacts, amongst other such parameters.
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