COVID-19 and food processing in Canada

Canadian Journal of Agricultural Economics-revue Canadienne D Agroeconomie(2021)

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Abstract
In this paper, I explore the economic activities of the food processing industry during the coronavirus disease-2019 (COVID-19) pandemic. One of the key lessons from food processing and related industries is that without being designated as an essential service and targeted stimulus packages, the food industry could have fallen victim to the COVID-19 crisis. Although the social and economic impacts of the interventions are not clear, being designated as an essential service was likely far more important to the food industry than the targeted stimulus packages. The pandemic and shutdown orders had a considerable production reallocation effect. Some processors have seen temporary closure and reduced capacity utilization. On the upside, disruptions in the food processing sector have not been as severe as in non-essential sectors. The food processing sector has proven to be relatively stable during the pandemic - food was still processed and delivered to consumers and food price increases were minimal in most cases given the scale of the shock. Moving forward, because COVID-19 is a global crisis, internationally targeted and coordinated efforts to tackle the virus could place the industry on a strong trajectory towards economic recovery and growth. Resume Dans cet article, j'explore les activites economiques de l'industrie de la transformation des aliments pendant la pandemie COVID-19. L'une des principales lecons tirees de la transformation des aliments et des industries connexes est que sans etre designee comme un service essentiel et visee par des plans de relance cibles, l'industrie alimentaire aurait pu etre victime de la crise du COVID-19. Bien que les impacts sociaux et economiques des interventions ne soient pas clairs, etre designe comme un service essentiel etait probablement beaucoup plus important pour l'industrie alimentaire que les plans de relance cibles. La pandemie et les ordres d'arret ont eu un effet considerable de reallocation de la production. Certains transformateurs ont connu des fermetures temporaires et une utilisation reduite de leurs capacites. Les perturbations dans le secteur de la transformation des aliments n'ont pas ete aussi graves que dans les secteurs non essentiels. Le secteur de la transformation des aliments s'est avere relativement stable pendant la pandemie - les aliments etaient encore transformes et livres aux consommateurs et les augmentations des prix des denrees alimentaires ont ete minimes dans la plupart des cas compte tenu de l'ampleur du choc. A l'avenir, parce que le COVID-19 est une crise mondiale, des efforts coordonnes et cibles au niveau international pour lutter contre le virus pourraient placer l'industrie sur une trajectoire solide vers la reprise economique et la croissance.
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Key words
COVID-19,coronavirus,pandemic,food manufacturing,food retail,foodservice,financial market
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