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Food systems and COVID-19 in Latin America and the Caribbean: A first look at impact, and country response

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Consequences of the crisis

This document is an attempt by FAO to analyse the effects of the COVID-19 pandemic on agricultural markets effects that are still largely unknown. Information sent by FAO national offices in Latin America and the Caribbean (LAC).

Latin was analysed and classified according to the methodological framework for food systems proposed in Channels of Transmission for Food and Agriculture (Schmidhuber, Pound and Qiao, 2020), as shown in Figure 1.
Most current assessments foresee a contraction in both supply and demand for agricultural products, and point to possible disruptions in trade and logistics.

On the supply side, there are widely different views on the duration of the impact, price dynamics, differential impacts between domestic and international markets, differences across countries and commodities, as well as likely recovery paths and policy actions for mitigation.
On the demand side, there is greater agreement that agricultural demand and trade will slowdown, with contractions resulting from a deceleration in overall economic activity (GDP growth) and rising unemployment rates.