impact-of-covid-19-on-the-market
Intelligent pesticides
April 24, 2022
Organic farming
April 27, 2022
IMPACT OF COVID-19 ON THE MARKET
The COVID-19 pandemic has had widespread economic impacts on households and businesses worldwide.
In recent years, there has been a huge demand for the crop protection industry, increasing its importance on the growth. This is mainly because it is focused on the wellbeing of the crops and consumers. The being pesticides’ organic or synthetic components help control the pests from damaging the crops. With the impact of COVID-19, there has been a disruption in the market. The agricultural sector has faced many problems like lack of labor
availability, transportation barriers, agricultural supply chain, shortage of raw materials, restraint for market entrance, and lack of inventories in some regions
With COVID-19 leading to unemployment, many fertilizer and pesticide manufacturers face concerns that have led to the decline of various pesticide product manufacturing
Pesticides, be they synthetic or organic, play an essential role, as they have been able to serve as a critical solution for farmers across the globe .
Agriculture, as one of the most important sectors of the economy, which is responsible for ensuring the country’s food security, has not been spared the consequences of the outbreak of the corona virus, and activists in various sectors of the agricultural industry are facing problems in producing and selling their products.
Examination of statistical evidence shows that the amount of damage to the production, consumption and export of agricultural and food products this year was so high that the decline in agricultural products and supply to the domestic market was. On the other hand, the Corona crisis, with its direct and indirect effects, caused various changes in the economies of households and various agricultural sectors. The agricultural industry is one of the three main sectors of the economy that plays an important role in production, employment, income generation, exports, currency exchange, food supply, social welfare, GDP and economic growth.
However, the production of agricultural products in the food cycle chain has not always been constant throughout history and is changing due to various events. For example, the use of modern irrigation systems and the application of scientific research results in the production of agricultural products has increased the level of production.
On the other hand, along with increasing human progress and the use of human products (such as pesticides) to increase agricultural efficiency, the emergence of new and lesser known hazards is increasing. With the outbreak of Covid-19 disease in agricultural production by eliminating agricultural workers (statistics show that the share of labor in the agricultural sector compared to the total number of workers in the world is 26.5%), changing consumer demand, closure of food production facilities, Restrictions on the food trade and financial pressures on food supply disrupted the food chain.
The agricultural supply chain is witnessing a complex network of interrelationships between factors such as inputs, producers, transportation, conversion industries, trade, etc. The shock caused by the corona virus has had more effects on the end of this chain, which is consumption and trade.
As this disease has led to a recession in economic activity, as a result of declining incomes, demand will decline, and consequently food prices will fall. But overcoming the crisis due to the recovery of economic conditions and the restoration of revenues, can lead to higher demand in the market. Since the decision to produce will be accompanied by a time lag, prices are more likely to rise. However, due to declining incomes due to reduced consumption of producers, producers may pursue a plan to reduce production in the future, which will exacerbate the problem of excess demand.
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