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Agri-food markets and trade policy in the time of COVID-19











FAO. 2020. Agri-food markets and trade in the time of COVID-19. Rome.




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    Book (stand-alone)
    Agricultural trade & policy responses during the first wave of the COVID-19 pandemic in 2020 2021
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    Measures adopted around the world to contain the COVID-19 outbreak helped curb the spread of the virus and lowered the pressure on health systems. However, they also affected the global trading system, and the supply and demand of agricultural and food products. In response to concerns over food security and food safety worldwide, many countries reacted immediately to apply policy measures aiming to limit potentially adverse impacts on domestic markets. Covering the first half of 2020, the report provides an overview of short-term changes in trade patterns and policy measures related to agricultural trade that countries adopted in response to the pandemic. Despite the shocks caused by the COVID-19 pandemic and containment measures, the efforts of governments and agricultural sector stakeholders to keep agricultural markets open and trade flowing smoothly contributed to remarkably resilient value chains. Effects on global trade in food and agriculture remained limited to short-term disruptions at the very beginning of the pandemic. Governments’ policy responses covered a wide range of measures, including export restrictions, lowering of import barriers, and domestic measures. Most of the trade restricting measures were short-lived. International political commitments were pivotal in the coordination of a global response to the crisis and in deterring countries from taking unilateral measures that could have harmed food security in other parts of the world. However, COVID-19 is still spreading and may entail severe implications for access to food and longer-term shifts in global demand and supply of food and agricultural commodities.
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    Africa’s youth in agrifood systems: Innovation in the context of COVID-19 2020
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    Prior to the COVID-19 pandemic, young entrepreneurs in agrifood systems in sub-Saharan Africa were already facing a number of challenges. The main challenges include limited access to natural resources, finance, technology, knowledge and information, and insufficient participation in policy dialogues and other decision-making processes. The COVID-19 pandemic and its disruptions to agricultural value chains are presenting additional hurdles for these agripreneurs. Without focused and appropriately designed response interventions addressing their specific constraints and contexts, it is increasingly observed that some of the policy responses and measures put in place by governments to halt the spread of the virus are exacerbating the existing challenges that the youth are facing in engaging in agrifood systems. For example, several formal and informal micro, small and medium-sized agribusinesses that employ many young people, have been forced to close or downscale significantly as a result of lockdowns and movement restrictions at national and local levels. FAO, together with other members of the United Nations Inter-Agency Network on Youth Development (IANYD), has called for effective and safe partnerships with young people during and after the COVID-19 crisis to ensure that government and development partners’ response measures are inclusive of youth’s needs.
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    Impact of COVID-19 on informal workers 2020
    The COVID-19 pandemic is a major economic and labour market shock, presenting significant impacts in terms of unemployment and underemployment for informal workers. In rural areas, the livelihoods of especially the self-employed and wage workers are at risk, because agri-food supply chains and markets are being disrupted due to lockdowns and restrictions of movement. Families might resort to negative coping strategies such as distress sale of assets, taking out loans from informal moneylenders, or child labour. Specific groups of workers, including women, youth, children, indigenous people, and migrant workers, who are overrepresented in the informal economy, will experience further exacerbation of their vulnerability. Response measures should foster the expansion of social protection coverage to informal workers in agriculture and rural sectors, including timely cash transfers, food or in-kind distributions. Specific measures should be tailored towards women workers with care responsibilities at home, families that may resort to child labour as a coping strategy, as well as other vulnerable subgroups. Efforts should be made to maintain agricultural supply chains and strengthen the market linkages for local producers, while promoting decent work.

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