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Food prices, processing, and shocks: Evidence from rice and COVID-19.

ABSTRACT: Rice is the staple food for about half of the world's population and mills are the essential processing link between farmers and consumers, making rice milling one of the most important agro-processing sectors globally. This paper assesses changes in rice and paddy prices, and processing margins during the COVID-19 pandemic shock through the lens of rice mills in Myanmar. Our data, collected through telephone surveys with a large number of medium- and large-scale rice millers in September 2020, reveal significant disruptions from the COVID-19 pandemic, including transportation restrictions, employee lay-offs, and reduced operations relative to normal times. However, milling margins, and paddy and rice prices were mostly stable, showing only minor increases compared to 2019. Rice prices increased most for the varieties linked to export markets, though the gains were mostly passed through to farmers as higher paddy prices. Similarly, higher rice prices achieved by modern mills-due to extra processing-were mostly transmitted to producers. Our results also highlight the major importance of byproducts-broken rice and rice bran-sales to overall milling margins as byproduct sales allowed mill operators to sustain negative paddy-to-rice margins.

SUBMITTER: Goeb J

PROVIDER: S-EPMC8652574 | biostudies-literature |

REPOSITORIES: biostudies-literature

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Project description:Abstract In this paper, I explore the economic activities of the food processing industry during the coronavirus disease‐2019 (COVID‐19) pandemic. One of the key lessons from food processing and related industries is that without being designated as an essential service and targeted stimulus packages, the food industry could have fallen victim to the COVID‐19 crisis. Although the social and economic impacts of the interventions are not clear, being designated as an essential service was likely far more important to the food industry than the targeted stimulus packages. The pandemic and shutdown orders had a considerable production reallocation effect. Some processors have seen temporary closure and reduced capacity utilization. On the upside, disruptions in the food processing sector have not been as severe as in non‐essential sectors. The food processing sector has proven to be relatively stable during the pandemic – food was still processed and delivered to consumers and food price increases were minimal in most cases given the scale of the shock. Moving forward, because COVID‐19 is a global crisis, internationally targeted and coordinated efforts to tackle the virus could place the industry on a strong trajectory towards economic recovery and growth. Résumé Dans cet article, j'explore les activités économiques de l'industrie de la transformation des aliments pendant la pandémie COVID‐19. L'une des principales leçons tirées de la transformation des aliments et des industries connexes est que sans être désignée comme un service essentiel et visée par des plans de relance ciblés, l'industrie alimentaire aurait pu être victime de la crise du COVID‐19. Bien que les impacts sociaux et économiques des interventions ne soient pas clairs, être désigné comme un service essentiel était probablement beaucoup plus important pour l'industrie alimentaire que les plans de relance ciblés. La pandémie et les ordres d'arrêt ont eu un effet considérable de réallocation de la production. Certains transformateurs ont connu des fermetures temporaires et une utilisation réduite de leurs capacités. Les perturbations dans le secteur de la transformation des aliments n'ont pas été aussi graves que dans les secteurs non essentiels. Le secteur de la transformation des aliments s'est avéré relativement stable pendant la pandémie ‐ les aliments étaient encore

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Food prices, processing, and shocks: Evidence from rice and COVID-19.

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