World Grain - November 2020 - 42

FEATURE: COVID-19'S LASTING IMPACT

We've discovered that we don't
need to go to the office. We're
not driving or flying as much,
and it's changing the whole
energy sector completely.
Stephen Nicholson, grain and oilseed analyst, Rabobank
livestock sector. Nicholson noted that the varying
species' biological cycles will create a "long tail" of
potentially contracting feed demand. This already has
been reflected in the US June 1 corn stocks, in which
total corn demand in the second quarter of this year was
down nearly 20%.
The short-term pullback has been in US poultry
numbers, he said, while contraction in the pork and
beef sectors will take longer to be reflected. He said the
pandemic coupled with the continuing culling of pig
herds worldwide due to the African swine fever out-

break, which began in Asia but recently was discovered
to have spread to Germany, "have disrupted the feed
chain and makes it very difficult to figure out what the
demand is going to be."
DIGITALIZATION OF SUPPLY CHAINS
Another trend to consider in the post-COVID-19
era, according to Rabobank, is agricultural supply
chains becoming increasingly digital. The report
foresees farmers adopting digital platforms to collect, manage and share information along the supply
chain to enhance traceability or to track sustainability practices in production agriculture. E-commerce
platforms will grow in the farm input supply chain,
which has implications for producers and input suppliers, Nicholson said.
Nicholson said he foresees "major changes in the
farm input distribution system. It will go to an Amazontype format where you will have seed and chemicals
delivered directly to the farm. They will no longer be
going to the local agronomy center to get these things.
It will change the landscape. Those changes are because
of COVID-19 and also what's happening with inputs."

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42	

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November 2020
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World Grain - November 2020

Table of Contents for the Digital Edition of World Grain - November 2020

World Grain - November 2020 - 1
World Grain - November 2020 - 1
World Grain - November 2020 - 2
World Grain - November 2020 - 3
World Grain - November 2020 - 4
World Grain - November 2020 - 5
World Grain - November 2020 - 6
World Grain - November 2020 - 7
World Grain - November 2020 - 8
World Grain - November 2020 - 9
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https://www.nxtbook.com/sosland/wg/2015_04_01
https://www.nxtbook.com/sosland/wg/2015_03_01
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http://digital.world-grain.com/sosland/wg/2010_07_01
http://digital.world-grain.com/sosland/wg/2010_06_01
http://digital.world-grain.com/sosland/wg/2010_05_01
http://digital.world-grain.com/sosland/wg/2010_04_01
http://digital.world-grain.com/sosland/wg/2010_03_01
http://digital.world-grain.com/sosland/wg/2010_02_01
http://digital.world-grain.com/sosland/wg/2010_01_01
http://digital.world-grain.com/sosland/wg/2009_12_01
http://digital.world-grain.com/sosland/wg/2009_11_01
http://digital.world-grain.com/sosland/wg/2009_10_01
http://digital.world-grain.com/sosland/wg/2009_09_01
http://digital.world-grain.com/sosland/wg/2009_08_01
http://digital.world-grain.com/sosland/wg/2009_07_01
http://digital.world-grain.com/sosland/wg/2009_06_01
http://digital.world-grain.com/sosland/wg/2009_05_01
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