The heads of three global agencies warned on Wednesday (1) of a potential worldwide food shortage if authorities fail to manage the ongoing coronavirus crisis properly.
Many governments around the world have put their populations on lockdown to slow the spread of the virus but that has resulted in severe slow-downs in international trade and food supply chains.
Meanwhile panic buying by people going into isolation has already demonstrated the fragility of supply chains as supermarket shelves emptied in many countries.
"Uncertainty about food availability can spark a wave of export restrictions, creating a shortage on the global market," said the joint text signed by Qu Dongyu, head of the UN’s Food and Agriculture Organization (FAO), Tedros Adhanom Ghebreyesus, director-general of the World Health Organization (WHO) and Roberto Azevedo, director of the World Trade Organization (WTO).
That is not an idle threat. After the 2007 global financial crisis, rice producing countries India and Vietnam restricted exports to ward off expected price increases. The result: food riots in several developing countries as the price of rice soared.
The warning could be directed at Russia as officials there have mulled restricting wheat exports and have already tapped the nation's reserves to ensure prices don't jump.
"In the midst of the COVID-19 lockdowns, every effort must be made to ensure that trade flows as freely as possible, specially to avoid food shortage(s)" from developing, the joint statement said.
"When acting to protect the health and well-being of their citizens, countries should ensure that any trade-related measures do not disrupt the food supply chain," it added.
Over the longer term, confinement orders and travel restrictions risk causing disruptions in agricultural production due to the unavailability of agricultural labour and the inability to get food to markets.
"Such disruptions including hampering the movement of agricultural and food industry workers and extending border delays for food containers, result in the spoilage of perishables and increasing food waste," the three leaders noted.
Closing borders has exposed just how much certain countries are dependant upon foreign workers to bring in crops.
- Just start of crisis -
Unless solutions are found quickly the lack of seasonal farm labourers from Mexico puts the production of many crops in the United States at risk. In Western Europe the absence of workers from North Africa and Eastern Europe could produce a similar result.
"We are just at the start of this crisis," said FAO senior economist Abdolreza Abbassian, who judged it to be one more of transport and logistics rather than production.
He believes what happens in India, which is under a nationwide lockdown for another two weeks, will be key given the size of its population and role as an exporter.
"Harvests are beginning in several weeks, the fluid movement of goods must be assured," he said.
The FAO, WHO and WTO leaders also stressed the need to protect employees engaged in food production, processing and distribution, both for their own health and that of others, as well as to maintain food supply chains.
Supermarket cashiers are among those who have succumbed to the virus in Italy and France, where some workers have staged walkouts over the lack of measures and equipment to protect them.
Upscale Whole Foods Markets in the United States is also facing work stoppages.
The last few years have seen international cooperation wilt, with US President Donald Trump snubbing international agreements and institutions and launching trade wars.
But the FAO, WHO and WTO said working together is needed to avoid food shortages brought on by measures to combat the novel coronavirus.
"It is at times like these that more, not less, international cooperation is essential," they said.
"We must ensure that our response to COVID-19 does not unintentionally create unwarranted shortages of essential items and exacerbate hunger and malnutrition."
DC London Pie Limited, Pizza Hut UK’s restaurant operator, entered administration just 10 months after rescuing the chain.
Yum! Brands secured 64 dine-in locations saving 1,276 jobs, while 68 restaurants and 11 delivery sites will close permanently.
Rising labour costs and tax pressures blamed as UK hospitality sector faces mounting challenges from wage increases and reduced consumer spending.
Pizza Hut collapse
Pizza Hut UK faces major upheaval as its restaurant operator entered administration on Monday (20), resulting in the immediate closure of 68 dine-in locations and 11 delivery outlets. The move puts 1,210 jobs at risk, marking another significant blow to Britain’s struggling casual dining sector.
DC London Pie Limited, the company operating Pizza Hut’s UK dine-in restaurants, appointed FTI Consulting as administrators after facing severe financial pressures. The development comes less than a year after the firm had rescued the chain from a previous insolvency.
In a partial rescue deal, Pizza Hut’s global parent company Yum! Brands stepped in to acquire 64 dine-in restaurants through a pre-packaged administration arrangement. “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible,” said Nicolas Burquier, managing director of Pizza Hut International Operating Markets to Reuters.
Approximately 1,276 employees will transfer to the new Yum! Brands operation, though the company confirmed that delivery and takeaway services remain unaffected by the administration process.
Hospitality sector struggles
Businesses are being squeezed by a combination of increased National Minimum Wage requirements which rose 9.8 per cent in April 2024 to £11.44 per hour and higher employer National Insurance contributions announced in the government’s autumn budget.
Isabelle Shepherd, a partner at HaysMac, explained that “hospitality businesses are suffering from the twin pressures of reduced sales and significantly increased labour costs, squeezing cashflows and working capital.”
DC London Pie had faced mounting difficulties, including a winding-up petition from HMRC over unpaid taxes filed just last month.
Pizza Hut UK is not alone in its struggles. Papa Johns closed nearly 75 UK restaurants in 2024, while TGI Friday’s UK operator Hostmore entered administration last year, affecting 36 stores and 1,000 jobs.
The Centre of Retail Research projects approximately 17,000 shop closures across Britain throughout 2025, signalling continued difficulties for the retail and hospitality sectors.
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