The continuation of the epidemic has brought difficulties to food processing companies in the following aspects:
a.) The problem of the upstream raw material supply being blocked
Traffic control has severely blocked the raw material supply channels of food processing companies, and most of the raw material or packaging material suppliers have not fully restored their supply. For some food processing companies that rely on imported raw materials for production, the prolonged customs clearance and logistics time has made it difficult to resume production.
b.) The problem of commodity supply and demand
Declining market demand has led to backlogs in restaurants, commercial and shopping district stores and their distributors, while supermarkets often find certain types of goods out of stock early, especially supermarkets located near the community. Due to the control of the flow of people, upstream food processing companies are affected by changes in market demand, and inventory is also affected by transportation restrictions.
c.) Problems with difficult cash flow
Food processing companies not only face cash flow difficulties themselves, but their employees, suppliers and factory rents will also be affected.
d.) The problem of personnel management dilemma
All employees of food processing companies must meet the requirements for isolation, and adequate equipment for epidemic prevention and control is required on site.
In order to overcome these challenges, food processing companies must be flexible. There are already many excellent examples of active adjustment and cooperation:
Ⅰ.) Local government departments have taken some measures to restore agricultural production to ensure the normal operation of logistics transportation and trade markets. At the same time, efforts have been made to ensure the market supply of vegetables and main products, to ensure stable prices, and to organize a large amount of grain reserves.
Ⅱ.) In all links of the supply chain, food processing companies stock enough masks and related protective equipment, and measure the body temperature of employees working on site.
Ⅲ.) The e-commerce platform provides online channel solutions for agricultural products, and fully opens up supply chain, logistics and other resources for agricultural products.
Ⅳ.) Many leading food processing companies and banks help retail companies to survive better by extending payment deadlines.
The entire food industry is facing this crisis together, and local governments and organizations and associations are also providing additional support and assistance to food processing companies that are more affected by the new crown virus.