The Impact of COVID- 19 on Agriculture
Just two months ago the world of agriculture had clearly defined historical challenges, although difficult to overcome, all known and familiar.
Today, an invisible enemy, who does not understand borders or territorial divisions, who has no precedent and no respect for any economic sector, has blown up the rules of the game. Yes, we are talking about the global pandemic COVID-19, (again). This virus has shaken not only the foundations of health in all countries but also its economic robustness.
Much is said these days about sectors of the economy such as restaurants, transport, tourism, but what about agriculture?
It is not lost on anyone that in times of crisis and uncertainty, the population tends to stock up on food, but it is also true that purchasing patterns have varied, needs have changed. They gravitate to another type of food and the supply and demand have to self-balance in a very short space of time.
Our productive sector, the primary sector, is making a heroic effort to stay afloat.
Digital transformation, a pending subject in agriculture
Now it's not about swimming to the nearest shore, but about not sinking. Thousands of farmers across the country face an uncertain future and a radical change in the rules of the game.
Automatically due to the economic problems and damages created the sales channels must reinvent themselves. This is seeing more and more farmers forced to carry out a digital reinvention to get their products directly to the consumer in order to reduce costs and increase margins, In short, the global possition of the sector has completely changed.
Irrigation, a key factor in Income Security
Our farmers continue to produce, reinvent themselves and adjust their costs in order to ensure that this essential service, the supply of food, continues to be provided normally. There is a lack of seasonal laborers, very specific labor in some sectors that came from immigrants, and this with the closure of borders causes an increase in costs or simply makes it impossible to carry out these jobs.
The most efficient solution continues to be irrigation and especially automated irrigation. Efficient and effective custom design of irrigation systems will enable producers to increase production while simultaneously decreasing man-hours required to operate and monitor irrigation. The current government grants and tax incentives offer a one time only opportunity to invest in the future.
The correct management of water resources is still a pending issue with many systems managing water ineffectively. This increases overheads such as power and water as well as labour costs, something that farmers can not afford in the current climate.
The next few months will be crucial worldwide, but particularly in Australia, to show the position that the Agricultural Sector will take in a post COVID world. Once the health crisis is over and when the trees allow us to see the forest, will we have an indispensable, effective agricultural sector that is leaner and greener? This may be the gateway to a flourishing sector that is the backbone of the local economy.
COVID -19 could recreate agriculture positively.