Around one fifth of global population is currently isolated in a quarantine
In a reaction to this, governments come up with food supply restrictions. Yet, this causes concerns about security of their food supply.
In many countries, outbreak of coronavirus epidemic was followed by increased presence of people in food stores. Empty shelves in supermarkets partially became a sign of the current SARS-CoV-2 pandemic and concerns on supply-customer chain flow are growing.
Regulations imposed on export of medical devices may serve as an example of where the situation can lead if governments decide to proceed to similar regulations of food export. “If major food exporters proceed to regulations, people will start to worry,” said Phin Ziebell, agribusiness economist at National Australia Bank.
An example may be Vietnam, the third largest rice exporter, which already proceeded to rice export restrictions. According to Ziebell, there’s danger that the amount of rise traded in world markets could decline in 10-15% in case Vietnam does not release the restrictions. Not even Indonesia could supply the shortage. Russia’s vegetable oil union has demanded restriction in sunflower seed exports, and Malaysia slowed palm oil production.