The farming business is influenced by Coronavirus on a global scale. How your farming activity is impacted by pandemic I will unveil for you in this blog.
Farming products demand during covid-19
The global economy is influenced by demand. And demand is influenced by people’s behaviour. For instance, when the economy is growing we as humans are more willing to spend our money on pleasure activities, holidays, hobbies and others. And in those conditions airlines, companies have more passengers who want to travel in different parts of the world which is translated into higher income for those organizations. In those economical growing conditions, the demand for food is growing too but not too much.
On the other hand, when the economy is slowing down because of different reasons such as economic crisis or pandemic, people are not willing to spend money on hobbies, holidays and other leisure activities. Therefore, in these conditions airline companies are slowing down their business activities or can even go in bankruptcy. Regarding food and necessities, people still need them, therefore the demand for those may decrease but not too much.
The concept I explained to you is from business books and explains the demand for goods and services during the economic cycle. Moreover, what is happening now is more complex and different than an economic crisis because people’s lives are in danger. And we humans have different and unpredictable behaviour in those kinds of circumstances.
How is your farming business influenced by the coronavirus?
Your farm can be influenced by covid-19 in many different ways. It depends on you if you are prepared and open to embracing the opportunities and if you are prepared to tackle the threat
The threats that can affect your farming business should be analyzed from farm to farm. Here I will share some general ones. For instance, particular seeds you use every year may not be delivered on time for you to start planting. The same thing can happen with fertilizers or pesticides too. You can have similar situations with spare parts for agriculture machinery. Some of the employees may not be able to come to work.
Due to this event which we didn’t experience before in our lives, we are not prepared. However, some farmers will react fast and will be able to manage this covid-19 situation but others may be in a situation of not planting this season or many other reasons along the way who have as a final result not being able to harvest.
How prices are influenced by the coronavirus
Countries around the world start to impose quarantine. Our leaders do this to protect us and to slow down or to prevent spreading covid-19. In these new conditions which we didn’t experience before we want to be sure that we have our necessities provided and we buy more than usual. On the other hand, the usual stock can’t satisfy the increase in demand in the short term. Therefore situations in which one kilogram of onions is around 17 US dollars (photo) in Indonesia can happen, even at this price, you can barely find onions. Or lack of toilet paper in Australia and now even is some parts of Germany.
Therefore, you can have a huge advantage this season. It depends on you to step out from the tractor driving seat and do business as a real business owner. If you are willing to transform this threat into an opportunity, you can have a huge advantage this season and your farm can make high profit.
Is covid-19 a threat or an opportunity?
I see that coronavirus is perceived as a threat to humankind. Because it disturbs the way we were used to doing things. We can see that goods can’t travel for long distances (opportunity for those who can deliver to the local community).
The key question is: is it a threat or opportunity for your farming business? I will ask you another question to help you find your answer: Are you stuck into doing things as before or are you willing to do something different? If you are willing to do something different, you may embrace the opportunity otherwise it may become a threat for your farming business.
During the coronavirus crisis, you should identify what is critical for your farm to have your crops going forward. I want to emphasize that what is critical to one farm may not be to yours’. This is different from farmer to farmer, even if farms are in the same country, or region or even neighbours. Because every farm is different. Different owners, different agricultural machinery, different employees, and I can go on with examples. Please stop copy what somebody else is doing. We can help you to find what works for you, look at our services, and don’t hesitate to contact us. We are here to help you.
Therefore coronavirus can bring you opportunities or can break your farming business, depends just on you.
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