Impact of COVID-19 on the Global Silage Inoculants Market-
Due to the COVID-19 pandemic, livestock and feed industries have witnessed a disruption in their supply chain and entire feed input value chain, commencing from raw material procurement to processing, packaging, and distribution. The impact of COVID-19 on the global market is expected to be low for a short duration of time as most of the manufacturers have sufficient raw materials and end-product stock. However, they are expected to witness challenges in growth if the pandemic prolongs, and trade restrictions are not uplifted.
The outbreak is expected to have a key impact on the supply chain and value chain of the global silage inoculants market. The demand for silage inoculants is interlinked with the demand for animal feed, which in turn is interlinked to the demand for animal products. Declining sales of livestock and livestock products in the global market is expected to result in declining demand for feed and silage inoculants. The following figure depicts the export-import trade statistics of meat and edible meat offal in the developed market economies of the world. A steep decline has been witnessed in the export-import trade from January 2020, when the COVID-19 pandemic began spreading across the globe.
Import-Export Trade of Meat and Edible Meat Offal in Developed Market Economies (April 2019-March 2020)
The demand for feed, including silage feed, is stable in the current market scenario. However, the widening supply-demand gap in the feed industry due to trade restrictions and closure of international borders is negatively affecting the market growth of silage inoculants. Several European countries have restricted their trade with other countries to curb the spread of COVID-19. This has caused a disruption of the supply of raw materials, containers & vessels, inoculants, and other micro-ingredients used to produce silage feed. Although the outbreak will not have a notable impact on silage production for a short period, the negative impact on the production of silage inoculants and silage feed, made from cereals and grains, is expected as a majority of silage inoculants are used for cereals and grain silage.
MRFR has identified a few potential challenges that are being faced by the developing countries while sustaining their economy amidst the global pandemic through its COVID-19 analysis tool. The potential challenges being faced by the developing countries are the lack of proper storage and transportation infrastructure, including cold storage, and the availability of labor.
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Source: International Trade Centre