With the new coronavirus pandemic, the crisis is affecting the economy and industries. In Brazil, beef production, for example, is already beginning to feel the decline in the crisis, especially “noble meat”.
In Mato Grosso do Sul (MS), the region with the largest share of beef slaughter, three slaughterhouses in the state have already given general holidays this week. In the country, in 4 days, the price of beef per arroba rose 3.5%.
The crisis in the economy with the pandemic reaches the meatpacking sector
The economy depends on all sectors, for example, with the lack of meat, other sectors that need meat suffer. Although the meat processing plants are closed, some restaurants, hotels and bars, which need meat to stay open, have also closed their establishments, one depends on the other.
Open-air markets, created to help small and medium-sized producers deal with changes in prices and demand, are still stable.
Normality continues for corn and soybeans, despite the difficulties with logistics caused by contact during the pandemic, frozen products are still in high demand. Livestock suppliers have become apprehensive due to the high price of corn and its derivatives.
Therefore, if these values continue to rise, the inputs that maintain demand for animals may fall. Beef production at the beginning of 2020 increased by 18.3%.
A measure published by the European Commission requires the agri-food chain to maintain a flexible approach to prevent the spread of the virus among employees. This measure is expected to last two months and may be postponed, depending on the situation.
Therefore, with the pandemic in the world, the demand for products in agribusiness in particular will be affected by the crisis. Countries need to invest money in health and maintain the population. Concern about contact and proliferation of the virus cuts off the relationship and some products become more expensive due to the supply and demand economy.