Mike Straumietis believes the COVID-19 epidemic has caused a lot of people to develop a negative opinion of processed food. People worldwide are turning toward home cooking and homemade meals as health and food safety take center stage. Supply chain issues, rising material costs, and economic setbacks have also combined to cause the price of dining out to increase steadily over the past few years. Home cooking has become the preferred alternative due to health concerns and is an effective way of saving money each month.
As a result, the hospitality and food businesses might be in danger. Mike Straumietis anticipates the global adoption rate of urban hydroponic farming systems to soar in the wake of the widespread coronavirus outbreak. Additionally, the agriculture sector had challenges in the early phases of the pandemic. For instance, there were severe labor shortages on farms, many farmers missed the harvesting season for seasonal crops, and agricultural product prices fell drastically. Many nations also became aware of their overreliance on food imports and turned their attention to domestic and local production. Current world events have further strained the supply chain, causing economic repercussions throughout the agricultural sector.
According to an analysis, slower economic development will result in decreased global food consumption—the per-capita demand for calories declines as earnings fall. According to projections, global calorie demand per person could decrease by 1% from baseline levels in 2020–2021 and 2029. Mike Straumietis believes less developed countries are susceptible to magnified outcomes since they spend much of their income on food. A decrease in the demand for sustenance in these areas could be a major goal for consumers and producers alike.
Agriculture markets have experienced a shock due to the COVID-19 pandemic, and Mike Straumietis anticipates this shock to continue in the coming years. The pandemic’s macroeconomic effects, such as the decrease in household income, are causing the gross calorie demand to plummet, particularly in LDCs. By the decade’s end, Mike Straumietis believes increased labor will help eradicate hunger and malnutrition since the epidemic puts more people at risk. As conditions continue to slowly improve worldwide, a resurgence in agricultural work will be necessitated by an increase in laborers and the resulting decrease in available jobs. An end to the labor shortage in the farming sector could mean normalizing global food prices, and alleviating supply chain malfunctions will further supplement this situation. As a result, increased household income will likely see the demand for calories return to normal.
However, a progressive decrease in agricultural output will result from the agriculture sector’s response to declining consumer demand in the short term. Due to a more significant reduction in demand for high-value goods, Mike Straumietis anticipates livestock production to reduce more drastically than cereal production. In addition, agriculture prices will decline, at least temporarily, due to the slow supply-side response to this decreased demand, further straining farm revenues. The extent of these adverse effects will be determined by the duration of the slump and innovation in the agricultural sector.