It’s only a few months, and the spread of the novel coronavirus (COVID-19) has developed into a global public health crisis, with more than 212 countries and regions affected. To date, about 3.7million people have tested positive for the virus, and more than 258,800 deaths have been counted. The covid-19 pandemic not only affects the everyday lives of people but also significantly impacts economies around the globe. The pandemic presents a devastating demand and supply shock that affects international trade flows and production chains.
Just like other sectors, no part of the coffee chain has been spared by COVID-19. Even though governments are implementing policies to save lives and cushion the economy, a global economic downturn in the sector is unfolding. While earlier reports primarily focused on the dramatic impact on cafes, roasters, and baristas, the green coffee supply side is an equally vital part of the emerging picture. Coffee is an agricultural product consumed globally and uses freight shipping to cross many borders, sustaining the lives of millions of coffee growers and producers.
As has been observed in the recent past, COVID-19 has, in the short term, led to decreased out-of-home consumption of coffee as many countries began adopting a full or partial lockdown. Offices, restaurants, and coffee shops remain closed in a bid to reduce the spread of the virus.
While this is the case, data from the retailers and supermarkets shows that panic buying and stockpiling in some countries led to increased consumer demand. However, this is not likely to have a long-term effect on consumption. Naturally, following a spike in demand, there will be significantly less demand in the coming weeks or months as people draw down stocks kept at home.
No doubt, shipments have been delayed by a limited number of available containers, while ports have had to reduce their staff to comply with social distancing rules. This has consequently led to slow overland transportation in both producing and consuming regions. In response to these delays, especially as COVID-19 intensifies in countries producing coffee, companies are stockpiling, thus leading to high market prices.
Covid-19 pandemic shows the coffee supply chain needs to embrace new technologies. Here is how technology can help the coffee supply chain/international trade amid the COVID-19 pandemic.
Use of autonomous robots
Autonomous robots are gadgets that are programmed to perform tasks usually done by a human with little to no human intervention or interactions. Essentially, autonomous robots can recognize and learn from their surroundings and make decisions independently. Autonomous robots can be used in coffee-manufacturing plants in the wake of COVID-19 pandemic to replace reduced staff. It can also be in ports where the staff has been reduced in compliance with social distancing rules.
Use of technology to enhance communication
In the wake of a coronavirus disease pandemic, more and more lockdowns are being announced each day. As the situation evolves, coffee supply chain stakeholders can take advantage of various communication tools to stay in touch until normalcy returns. This may mean stakeholders try entirely new ways to reach out to each other, for instance, using zoom or Webex to conduct virtual meetings.
Use of agricultural technologies and digital agriculture solutions
Using agricultural technologies, especially digital agriculture solutions, provides a wide range of outstanding opportunities to address the effects of COVID-19 on the coffee supply chain. Drones can be used to address labor constraints and reduce human contact amid the COVID-19 pandemic. Drones and other digital extension tools can help farmers adopt labor and input-saving practices. Digital agriculture solutions that link coffee farmers to buyers and logistics services could help reduce the effects of coronavirus disease on the supply chain.
Coronavirus disease pandemic has presented the world with an opportunity to rethink action to address its effects on the coffee supply chain and international trade. The ideas, as mentioned earlier, should only act as the foundation for a more robust discussion. By collaborating and bringing ideas together, the global community has a much stronger chance to bounce back from the effects of COVID-19 on the global coffee supply chain.
