Ever since COVID-19 reared its head last year, the entire world has been in a flux.
And no area has been more affected by the pandemic than farm production, for several reasons.
Lack of labour availability, in a sector that is largely labour-intensive, has obviously created a bottleneck from which we still haven’t recovered. This is especially true for sectors that are more seasonal in nature than others as limited mobility means that seasonal labour is more scarce than ever.
Seeds, fertilizers/pesticides, energy - the farming sector depends heavily on availability of all three to continue functioning seamlessly. But a breakdown in logistics due to the pandemic has also impacted how easily these are available. And while it may not impact this growing season, we are yet to see the full scale in which it will affect the next growing season.
Another area of the farming sector that has seen a significant impact is the food processing sector. Again, lack of labour has definitely slowed production in food processing plants especially due to illnesses, but what has also definitely had an adverse impact are social distancing measures that have reduced productivity and efficiency. a
These three - labour, raw materials and food processing - while just some of many different areas that have impacted the farming sector, together have pushed the world towards local produce. And there is research to prove it.
In a recent study, over 50% of the respondents found locally-sourced ingredients more important than before the outbreak. What’s more, 76% of the respondents from 11 different countries believed that locally-sourced ingredients are completely/somewhat trustworthy.
This not only highlights the significance of local produce in terms of consumer perception, but also the long term impact of localization. And here is where the opportunity lies.
Sourcing locally, especially for the hospitality industry, can solve a plethora of problems such as availability, freshness and cost of sourcing - all of which will help them pass on the end benefit to the consumer.
At the same time, locally-sourced ingredients will also help their customers see them in a positive light - something that is much needed in today’s world to encourage customers to visit or engage with your establishment.
This means, if the hospitality industry really wants to step out from the shadow of the pandemic and start an upward trajectory towards profitability, locally-sourced produce has to be the centerpiece of your strategy.
