In the wake of COVID-19, the food industry has been badly hit globally. We are currently hearing news about an impending worldwide food shortage as well. The major disruption caused by the epidemic has led to closure of manufacturing units, storage facilities and dine-in outlets across the globe. Job cuts and disorderliness in the supply chain system has further aggravated the condition.
In Sri Lanka the current economic downturn and fertilizer fiasco has made this predicament doubly grave. Therefore, it is imperative that Sri Lanka, re-imagines and re-engineers our processes within a short period of time, in order to respond to these changes and impending food shortages. In this scenario, it is important to develop a definitive and aggressive plan for recovery that will help the food industry to adapt to the situation at a rapid pace.
Protecting the country’s food production capacity
In the short term, our recovery path should aim at protecting the country’s food production capacity. This would enable the domestic farming, production, processing, and food service sectors to address their operational and cost challenges and revive from the pandemic. In the long term, the government has to reverse its regulations on food and drink, focusing more on improving self-sufficiency. They also need to work around the imposed chemical fertilizer import bans, which has resulted in severe crop losses.
To address the challenges of a significant trade deficit – primarily affected due to COVID-19 disruptions globally – the government should now focus on producing a majority of our food in the country. This would require huge investments. However if we succeed, the societal and economic gains will be significant.
Minimizing loss of production and profitability through support
Due to the pandemic, subsequent lockdowns and changes in demands, the domestic farming, manufacturing/processing and supply chain has witnessed considerable loss. These losses can be minimized through government support for at least 6-12 months. For farmers, this can be in the form of aids like price support or productivity training. Support schemes should be implemented to aid supply for seasoned laborers, improving production and reducing costs for the time being.
For food production/processing and supply chain units, support should be in the form of maintenance and recovery. The government should implement and regulate definitive steps to help food businesses maintain liquidity and overcome their losses. The challenge here however, is that such measures will incur high deferral costs in the short run, and currently Sri Lanka may not have a way to implement these. However, if we do implement a strategy, we will have results in the long run.
Improving cleanliness and hygiene and
The hotel and restaurant business has been worst hit due to the coronavirus pandemic. Despite the current relaxation of lockdowns and regulations, restaurateurs are seeing major losses and operational challenges as consumers have become more cautious about discretionary spends amid this tough time. Additionally, people are still apprehensive about visiting restaurants in the light of contamination and hygiene factors.Improving cleanliness and hygiene in restaurants and cafes, as well as making the shift from dine-in to delivery are some ways to overcome this.
Ultimately, the recovery of our food industry is one that needs contribution from both the government and businesses. The road ahead seems to be paved with uncertainty and challenges, but making the right decisions will help us survive this global food shortage.
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