FAO calls on lawmakers to mitigate damage to fruit and vegetable supply chains by adapting policies

Analysts at the Food and Agriculture Organization of the United Nations (FAO) noted that in the context of the COVID-19 pandemic, manufacturers faced a number of problems when transporting products from field to shelf.

In particular, we are talking about restrictions on movement, high transportation costs, closing markets, changing demand and prices.

“Fruits and vegetables are extremely perishable products, they must be delivered to the market as quickly as possible. Trading opportunities, however, are limited because all links in the supply chain are broken: markets are closed, countries have tightened border crossings, ports are down, transportation prices have risen, and so on, ”said FAO economist Andrii Yarmak.

FAO highlighted the active work and ingenuity of manufacturers who continue to seek new distribution channels and supply opportunities. An interesting example is the farmers who cooperated with taxi drivers who lost their income to organize home delivery of products. In other cases, manufacturers collaborate with shipping companies. Online sales and deliveries are growing rapidly, although they still provide only a small share of sales.

FAO experts turned to lawmakers, especially in countries of Eastern Europe, the Caucasus and Central Asia, where open, wholesale and street markets are often the only opportunity to sell products for small farms, with a recommendation to adapt policies, tactics and investment to the specific realities and needs of each country.

The organization also said that falling oil prices reduced the purchasing power of large importers, leading to the depletion of usually reliable markets for producers in Moldova and Uzbekistan.