![]() ![]() As a global recession is now more imminent, money is flocking to safe-haven currencies, like the US dollar. Prices of globally traded products, like tropical fruits, are reported to be extremely volatile since the Covid-19 outbreak.Ĭhanges in exchange rates will also potentially affect trade flows. Still troublesome are the flight disruptions that have resulted in problems for some specific items that are flown on passenger jets, like premium exotic fresh fruits and cut flowers. For example, just after the Covid-19 outbreak in China, a shortage of sea containers was reported, but this situation has been improving over the course of March. The uncertainty about the situation and potential new challenges popping up are affecting the market. The sudden high retail demand in some countries has also resulted in higher transportation costs. ![]() At some borders, formalities will delay transportation times, leading to additional costs. ![]() Increasingly, countries around the world have closed borders, though not for transportation of essential products, including fresh produce. Likely this will have an impact on shopping behavior beyond the coronavirus crisis.įresh produce businesses selling abroad have to deal with challenges caused by border closures, port lockdowns, flight cancellations, and other hiccups. In China, fresh produce sales via online platforms MissFresh, Dada-JD Daojia, Dingdong, and Freshippo grew by 300%, 374%, 220%, and 330% YOY, respectively, during the virus lockdown period. Also, online sales and grocery delivery business have risen significantly, according to data from Nielsen. The ‘healthfulness halo’ around fresh produce could be a positive demand factor that ends up lasting longer than the Covid-19 outbreak. During mid-March 2020, fresh produce retail sales increased over 30% YOY in the US, while sales of frozen fruits and vegetables increased over 100% YOY because hoarding and eating at home have become more prevalent. But overall sales volumes of fresh produce are expected to remain at pre-coronavirus levels or even to increase, as at-home meals include a higher proportion of fruit and vegetables compared to out-of-home meals. Shoppers Are Reacting Stronger Retail Salesįoodservice demand for fresh produce has virtually stopped in Europe, North America, and New Zealand and is rapidly slowing in Australia. ![]()
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