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Significant effects: Corona crisis leads to shifts in the food market

Slump in demand in the catering trade, significantly more deliveries to supermarkets: the corona crisis is causing shifts on the German food market.

It is becoming apparent that the pandemic and the associated restrictions on society and the overall economy will have a significant impact on agricultural markets, according to an analysis presented by the farmers’ association on Friday. First of all, short-term shocks from interrupted or delayed trade relationships can be seen. Sales channels would have to be redirected.

For example, the demand for milk, cream, curd cheese, yoghurt, butter and sliced ​​cheese in the food trade is strongly influenced by the Corona events. Products that can be stored are particularly in demand. This would partly more than compensate for the decline in demand from hotels and restaurants. For many dairies, this relocation is a logistical challenge. There is also very strong demand for fresh meat and processed meat for the sausage industry. At some point, however, the household supplies would be replenished.

There is also significantly greater demand for eggs in supermarkets, which is why more eggs would have to be made available in small packaging. An increase in demand for wheat products such as flour, bread and pasta also affects mills. According to the report, prices for some products are at least rising slightly – for example for apples that would be bought more. Potatoes are also in greater demand. It would probably be necessary to open camps that were actually only planned for later. Beef prices are under pressure, the report says. Flows of goods from Germany to Italy, France and Spain have been stalling since mid-March.

There will be a significant change in the flow of goods for the foreseeable future – with significant declines in out-of-home traffic in restaurants and system catering and a significant increase in demand from private households via the food retail sector. Medium-term market effects from a global recession are likely, but cannot be estimated at this time, the analysis says.

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