As the coronavirus continues, there have been erratic demand trends both upward and downward in the agriculture industry. Staple, non-perishable food items and citrus fruits have seen an increase in demand. This was reported by Tridge, a global sourcing and market intelligence hub for food buyers and suppliers.
On the other hand, food products with a shorter shelf life such as fresh vegetables, or those generally consumed in restaurants and bars have seen a decline in demand. As a result, both exporters and importers alike see a growing need to adjust their sourcing and sales strategies to align with swift changes in the market.
Citrus fruits and by-products such as orange juice have seen one of the biggest and most unusual increases in demand after the outbreak as shoppers purchase products high in Vitamin C. According to Bloomberg, futures for orange juice has seen a 22% increase in March, the highest monthly gain since October 2015.
Fresh fruit and vegetable sales negatively impacted
The demand for Vietnamese dragon fruit and watermelon, the main fruit export products, is recovering slowly in April as trade to China resumes. Exports had plummeted in February and March due to backlogs in crossing borders to China, its biggest export market for fruits. Vietnamese fruit exports to China fell by 30% compared to last year.
Fresh vegetables have also been negatively impacted in the US, as consumer habits show that Americans are less likely to eat vegetables at home rather than when eating out. Farmers have attempted to redirect their produce from restaurants to grocery stores, but are still facing difficulties with a lack of storage for its inventories.
The European Union has seen a decrease in tomato imports from Morocco, the fourth-biggest exporter, leaving 80% of the producers in Souss, a major hub for production and exports, to halt tomato shipments. Multiple factors, such as decreases in panic-buying, increases in logistics costs for exporting to the EU, as well as EU countries’ encouraging purchases of local food products, have influenced Morocco's tomato exports.
France, in particular, has decided to suspend imports from Morocco once the current contract amount ends, much to the worry of Moroccan tomato exporters as the country is their highest value-generating export market.
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