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Why are the shelves empty?

1

What is MAP?

2

Why is ethanol not produced?

3

COVID-19
CO2
MAP PACKAGING


A project on how COVID-19 interrupted the food supply chain through packaging.

PLEASE NOTE


Due to supply challenges we will have to temporarily limit the following:

ALL Beef, Pork & Poultry
Limit 3 TOTAL per Member. We apologize for the inconvenience.

FRESH MEAT SHELVES ARE COMPLETELY EMPTY (USA, 2020)

DOLLARS SPENT 25 FEBRUARY TO 25 APRIL 2020 COMPARED TO 2019

HOUSEHOLD CARE
+45.6%

SOURCE

DOLLARS SPENT 25 FEBRUARY TO 25 APRIL 2020 COMPARED TO 2019

MEAT
+43.6%

SOURCE

DOLLARS SPENT 25 FEBRUARY TO 25 APRIL 2020 COMPARED TO 2019

BAKERY
-5%

SOURCE

Unexpectedly, fresh produce like meat became exponentially scarce as the pandemic progressed.

READING

DEMAND GROWTH
(HAMSTERING)

PRODUCTION AND
LOGISTICS DISRUPTION

#STOCKPILE­PORN

SOURCE

SIGN LANGUAGE INTERPRETER AT DUTCH PRESS CONFERENCE ON 15 MARCH 2020

PLAY

4 MINUTES
NPR NEWS, 18 MARCH 2020

SOURCE
AUDIO

Consumer psychology played a part in amplifying the shortage on supermarket shelves.

A flock mentality develops when people see a scarcity of products, magnified by the traditional media making consumers buy more food than they need.

READING

TOP 5 WORLD MANU­FACTURERS 2015 COMPARED TO COVID-19 CASES ON 31 MARCH 2020

SOURCE
INFOGRAPHIC

CHINA

  • SHARE OF WORLD MANUFACTURING
  • COVID-19 CASES

UNITED
STATES

  • SHARE OF WORLD MANUFACTURING
  • COVID-19 CASES

JAPAN

  • SHARE OF WORLD MANUFACTURING
  • COVID-19 CASES

GERMANY

  • SHARE OF WORLD MANUFACTURING
  • COVID-19 CASES

INDIA

  • SHARE OF WORLD MANUFACTURING
  • COVID-19 CASES

For some commodities a handful of countries, or even fewer, make up the worlds bulk export supplies. Disruptions to those productions and shipments would have major global ramifications.

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What hinders the distribution of food?

RESTRICTIONS

SHORTAGES

BORDERS

OPERATIONAL

FISH
SHORTAGE

MEAT
SHORTAGE

VEGETABLES, FRUITS AND GRAINS SHORTAGE

CONSUMER PACKAGING SHORTAGE

19 March 2020:
Border Closures Create Massive Line of Trucks in Poland

As the pandemic advanced and countries across the globe imposed lockdowns closing borders, fears of the effects of these constrains on availability and prices of produce arose amongst consumers.

READING

PLEASE NOTE


Due to high demand milk is now one bottle per customer

SOURCE

About 70 dairy farms have dumped 3,006,183 liters of milk, on 1 April 2020 in Florida

SOURCE

Dairy farmers forced to dump milk as demand from the food services drops. controversially Grocery stores across the world have set purchase limits for milk unable to supply to feed the demand.

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ANIMAL RIGHTS GROUP “DIRECT ACTION EVERYWHERE” INVESTIGATOR

“NO PLACES TO PUT THESE PIGS”

WARNING


C02 STORAGE AREA


CARE MUST BE TAKEN TO AVOID SUFFO­CA­TION AND ASPHYXIA­TION

19 May 2020:
“Iowa Select Farms barn” used “ventilation shutdown” to “depopulate” thousands of hogs

PLAY

4 MINUTES
THE INTERCEPT

SOURCE
VIDEO

Slaughterhouses across the United States have experienced COVID-19 outbreaks, which have led to temporary plant closures.

The closures have created a glut of pigs in the supply chain.

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Will the rise of economic protectionism disrupt trade relationships? Has COVID-19 brought a potential for global warfare based on food supplies?

SOURCE
VARIOUS

WHEAT EXPORT FORECAST 2019–2020

RUSSIA
35 MT

WHEAT EXPORT FORECAST 2019–2020

EUROPEAN UNION
32 MT

WHEAT EXPORT FORECAST 2019–2020

UNITED STATES
27.2 MT

27 MARCH 2020

RUSSIA, THE LARGEST EXPORTER OF WHEAT, IMPLEMENTED A PERMANENT GRAIN EXPORT QUOTA IN RESPONSE TO CORONAVIRUS DRIVEN FEAR OF FOOD SHORTAGES.

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INCREASE IN DEMAND FOR PACKAGING SINCE THE OUTBREAK OF COVID-19

  • PLASTIC44%
  • CARDBOARD32%
  • STEEL11%
  • COPPER7%
  • AEROSOL6%
SOURCE

Another consequence of pandemic is more packaging waste. Contrary consumer high demand for packaged foods and water bottles has caused recycling plastic shortages.

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GOODS AND
MATERIALS

LIMITED MOBILITY OF WORKERS

What is MAP?

2

Why MAP became especially important during the COVID-19?

MAP PACKAGING

MODIFIED ATMOSPHERIC PACKAGING


THESE ARE THE GASES YOUR STEAK PACKAGE MIGHT CONTAIN

CO
10%
C02
80%
N2
4%
O2
6%

MAIN DISRUPTIVE EFFECTS ON THE SUPPLY CHAIN

SOURCE
DATA

PROBLEMS WITH ADEQUATE SUPLY INPUTS OR INGREDIENTS

59.6%
DISRUPTION

ISSUES IN SUPPLY OF PACKAGING MATERIAL

30%
DISRUPTION

DIFFICULTY ACCESSING SPARE PARTS AND EQUIPMENT

8.2%
DISRUPTION

Shortfall of seasonal workers do To COVID-19 in agriculture and food processing

SOURCE
VARIOUS

COUNTRY OF ORIGIN

#1

SOURCE

SEASONAL WORKERS LOSS

  • DE300K ▼
  • FR200K ▼
  • IT37K ▼
  • GB300K ▼
SOURCE

French farm producers suffer during the COVID-19 restrictions

PLAY

8 MINUTES
UNREPORTED EUROPE
EURONEWS

SOURCE
VIDEO

PLAY

9 MINUTES
NPR NEWS, 13 MAY 2020

SOURCE
AUDIO

COUNTRY OF ORIGIN

77%

SOURCE

SEASONAL WORKERS LOSS

UNITED STATES
1–2.7M

SOURCE

Limits on the mobility of people across borders and lock-downs contributed to labor shortages for agricultural & food processing sectors in many countries, particularly those characterized by periods of peak seasonal labor demand or labor-intensive production.

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7 DAYS
VACUUM PACKAGE

7 DAYS
MAP PACKAGE

21 DAYS
VACUUM PACKAGE

21 DAYS
MAP PACKAGE

PLAY

6 MINUTES
THE AUDIOPEDIA

SOURCE
AUDIO

As pandemic caused production and logistical delays rose, benefitS from MAP packaging becomes more vital in the fresh produce supply chain as it hardenS logistics issues by prolonging the shelf life of fresh produce.

READING

Effect of COVID-19 on MAP packaging industry market

SOURCE
INFOGRAPHIC

2015 AND 2020

  • MAP MARKET SIZE 2015
  • MAP MARKET SIZE 2020

MEAT POULTRY SEAFOOD

  • TOTAL MARKET SIZE
  • PRODUCT

FRUITS AND VEGETABLES

  • TOTAL MARKET SIZE
  • PRODUCT

PROCESSED
FOOD

  • TOTAL MARKET SIZE
  • PRODUCT

BAKERY

  • TOTAL MARKET SIZE
  • PRODUCT

OTHERS

  • TOTAL MARKET SIZE
  • PRODUCT

DAIRY
PRODUCTS

  • TOTAL MARKET SIZE
  • PRODUCT

OUTSIDE MATERIAL TRADE DISRUPTION

INSIDE GASES SHORTAGES

1,250 USD/TON
1,000 USD/TON
750 USD/TON
500 USD/TON

PRICE DROP FOR PLASTIC

  • 1 JULY 2019
  • 31 MAY 2020
SOURCE

Despite its importance in COVID-19 fight plastic demand has dropped significantly as fewer vehicles and home devices been produced making its price rise.

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MODIFIED ATMOSPHERIC PACKAGING MATERIALS

  • 10% PAPER
  • 90% PLASTIC

PE TRAY

ABSORPTION PE/SAP PAD

HIGH BARRIER PET/PVDC FILM

SELF-ADHESIVE LABEL
PL LABEL

SELF-ADHESIVE LABEL
PL LABEL

PRESSURE SENSITIVE WAX PAPER LABEL INK

USUAL PERCENTAGE GAS USED

  • O2 2%
  • CO 5%
  • N2 10%
  • CO2 83%

CO2 is critical component used in MAP packaging AND FOOD PROCESSING. Coronavirus driven CO2 shortage threatens worlds food supply.

READING

CO
CARBON MONOXIDE

CO2
CARBON DIOXIDE

N2
NITROGEN

O2
OXYGEN

MEAT COLOR FRESHNESS CHART

SOURCE
IMAGE

PALE

PINK

SLIGHTLY RED

CHERRY RED

RED

DARK

Used as colour stabiliser to maintain the typical red colour of fresh meat when the gas mixture is applied to the package.

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The Honorable Mike Pence
The Office of the Vice President of the United States
Eisenhower Executive Office Building
1650 Pennsylvania Avenue, NW • Washington, DC 20501


Dear Vice President Pence:

Representing thousands of American workers across all 50 states that ensure the reliability of our Nation’s food supply, we write to express our strong concern that the current coronavirus (COVID-19) pandemic creates a significant risk of a shortage in carbon dioxide (CO2) that would significantly impact access to essential food and beverage supplies and other essential sectors of the U.S. economy.

SOURCE

Why there is not enough CO2?

PERCENTAGE OF NITROGEN AIR PER BAG OF CHIPS

SOURCE
IMAGE

CRISPS
AND NITROGEN

FRITOS
19% AIR

PRINGLES
28% AIR

LAYS SALT
28% AIR

RUFFLES
50% AIR

CHEETOS
59% AIR

Used to displace oxygen, as filler gas preventing pack from collapsing, offering cushioning to the product and preventing crispy food from going stale.

READING

1 DAY
0% OXYGEN

1 DAY
5% OXYGEN

10 DAYS
0% OXYGEN

10 DAYS
5% OXYGEN

30 DAYS
0% OXYGEN

30 DAYS
5% OXYGEN

Used for fresh produce respiring Level usually reduced to 5% depending on the product.

READING

USES

ORIGIN

CONTROL BACTERIAL GROWTH

CONTROL OF MOISTURE

ENRICHING OF GLASSHOUSE

EXTRACTION OF OILS

EXTRACTION OF FLAVOURS

EXTRACTION OF COLORANTS

FILTERING OF WATER

FOOD PRESERVATION

GASIFICATION OF CARBONATE DRINKS

Why is ethanol not produced?

3

ETHANOL


REGULAR ETHANOL TRADE ROUTES
(FROM–TO)

  • 1EUEU
  • 2USCA
  • 3BRUS
  • 4BRKR
  • 5USPH
  • 6USKR
100%

MARKET VALUE DECREASE

CORN
-15%

  • JAN 2020
  • APR 2020

Ethanol is an alcohol produced by fermentation of the starch and sugars in corn, sugar cane, and sugar beets. Corn is the main feedstock for fuel ethanol in the US because of its abundance and low price.

READING
100%

MARKET VALUE DECREASE

ETHANOL
-38%

  • JAN 2020
  • APR 2020

As CO2 is a by-product of ethanol production the main reason for shortages, is a ramping down of ethanol production.

READING

BIOFUEL
82%

FOOD AND DRINKS
2%

INDUSTRIAL
2%

  • EURO
    95

    E5

    5% ETHANOL EU

  • EURO
    98

    E10

    10% ETHANOL EU

  • DIESEL

    B7

    7% BIODIESEL

PLEASE NOTE


April 7: Today, Poet Biofuels, the world’s largest biofuel producer, joins dozens of other American producers that have been forced to take plants offline. The facility has struggled in recent months to obtain adequate supplies of corn.

SOURCE

GROWING CORN FOR ETHANOL REQUIRES EXTENSIVE RESOURCES AND CAN COMPETE WITH FOOD

PLAY

1 MINUTE
SEEKER

SOURCE
VIDEO

BIOFUEL demand has plummeted as more drivers stay home in response to COVID-19. half OF the biofuels producers were forced offline, sending shockwaves through the entire agricultural supply chain.

READING
500%
250%

BOOM OF ONLINE SALE OF ALCOHOL

  • 7 MARCH 2020
  • 25 APRIL 2020
SOURCE

JOINT PRESS RELEASE FTA EUROPE & INTERGRAF
18 MARCH 2020
BRUSSELS, BELGIUM


We urgently call on European and national authorities to secure the supply of ethanol alcohol for the continuous production of food packaging.

PRINTING INK

Global shortage of ethanol effecting solvents and printing inks manufacturing as ethanol is a vital raw material for printing inks used for Flexible Food Packaging and labeling, a vital part of the food supply chain.

READING

OIL
MARKET CRASH

1.00$

CHANGE IN DOLLARS PER GALLON
IN MAY 2020 SINCE BEGINNING OF YEAR

CRUDE OIL
-61%

  • JAN 2020
  • MAY 2020
SOURCE

The evaporation of fuel demand due to COVID-19 has been a knock-out blow to biofuel plants across the world. Forcing closure of half of the US ethanol producing plants.

READING

SURPLUS OF OIL

TRANSPORTATION DECREASE

MARITIME EXPERT SAL MERCOGLIANO

“WE HAVE TANKERS OF OIL AND NO PLACE WHERE TO PUT THEM”

PLAY

4 MINUTES
NPR NEWS, 15 JULY 2020

SOURCE
AUDIO

April 2020:
low oil demand forces tankers to park off California coast

On 20 April 2020 the oil price made history. The US benchmark oil contract – known as West Texas Intermediate (WTI) – ended the day at -$37/barrel, entering negative territory for the first time. So much oil was available, with so little demand for it from a global economy in lockdown, and barely any space left to store it, that producers and traders had to pay buyers to take it off their hands.

Crash of oil market had drastic effect on other industries, including raw materials like ethanol.

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GLOBAL CALENDAR OF LOCKDOWNS

  • CN26.01.20
  • VN13.02.20
  • IT20.02.20
  • IR05.03.20
  • MN11.03.20
  • RU11.03.20
  • IT12.03.20
  • CH13.03.20
  • AU13.03.20
  • AN14.03.20
  • PH15.03.20
  • ES15.03.20
  • GR15.03.20
  • LU15.03.20
  • SL15.03.20
  • AU16.03.20
  • NO16.03.20
  • LI16.03.20
  • SI16.03.20
  • PE16.03.20
  • CR16.03.20
  • PY16.03.20
  • BO16.03.20
  • VE16.03.20
  • CV16.03.20
  • FR17.03.20
  • BE17.03.20
  • MC17.03.20
  • UA17.03.20
  • SR17.03.20
  • US17.03.20
  • BR17.03.20
  • EC17.03.20
  • DO17.03.20
  • CL17.03.20
  • CO17.03.20
  • PA17.03.20
  • VE17.03.20
  • LR17.03.20
  • MY18.03.20
  • LK18.03.20
  • DK18.03.20
  • AN18.03.20
  • BG18.03.20
  • AL18.03.20
  • MR18.03.20
  • DJ18.03.20
  • MU18.03.20
  • KA19.03.20
  • HR19.03.20
  • DE20.03.20
  • AR20.03.20
  • HN20.03.20
  • AW20.03.20
  • GT20.03.20
  • TG20.03.20
  • RW20.03.20
  • LK21.03.20
  • IN21.03.20
  • BD21.03.20
  • SV21.03.20
  • HT21.03.20
  • BF21.03.20
  • LK22.03.20
  • MK22.03.20
  • BA22.03.20
  • BO22.03.20
  • BS22.03.20
  • NP23.03.20
  • DE23.03.20
  • UK23.03.20
  • RO23.03.20
  • GR23.03.20
  • NL23.03.20
  • CY23.03.20
  • ME23.03.20
  • NP24.03.20
  • AU24.03.20
  • IN24.03.20
  • UZ24.03.20
  • LT24.03.20
  • PL24.03.20
  • MD24.03.20
  • BG24.03.20
  • CA24.03.20
  • TH25.03.20
  • AF25.03.20
  • PK25.03.20
  • BD25.03.20
  • KG25.03.20
  • NZ26.03.20
  • MM26.03.20
  • ZA26.03.20
  • ML26.03.20
  • UZ27.03.20
  • KE27.03.20
  • NA27.03.20
  • SZ27.03.20
  • AO27.03.20
  • FI28.03.20
  • RU28.03.20
  • IR28.03.20
  • MT28.03.20
  • AG28.03.20
  • BB28.03.20
  • BM28.03.20
  • DM28.03.20
  • GW28.03.20
  • NE28.03.20
  • TZ28.03.20
  • AW29.03.20
  • TT29.03.20
  • ZW29.03.20
  • ID30.03.20
  • LA30.03.20
  • EE30.03.20
  • PY30.03.20
  • SR30.03.20
  • LC30.03.20
  • GD30.03.20
  • NG30.03.20
  • SN30.03.20
  • GN30.03.20
  • GH30.03.20
  • LS30.03.20
  • BJ30.03.20
  • CAR30.03.20
  • AL31.03.20
  • CU31.03.20
  • ER31.03.20
  • UG31.03.20
  • CD31.03.20
  • LOCALISED
  • NATIONAL

TRAFFIC VOLUME IN EUROPE, WEEK OVER WEEK CHANGE

MAR 8 / MAR 15

SOURCE

Delta Air Lines jets parked in Victorville, California on 28 March 2020

2,000

NUMBER OF FLIGHTS AROUND THE WORLD DECREASE

LONDON
LHR

  • 1 MAR 2020
  • 31 MAR 2020
2,000

NUMBER OF FLIGHTS AROUND THE WORLD DECREASE

BEIJING
PEK

  • 1 MAR 2020
  • 31 MAR 2020
2,000

NUMBER OF FLIGHTS AROUND THE WORLD DECREASE

LOS ANGELES
LAX

  • 1 MAR 2020
  • 31 MAR 2020

Lockdown measures put in place to contain the spread of COVID-19 represent an unprecedented shock to global oil demand. With countries on lockdown there is significantly less of all activity, and the demand for oil and gas has fallen spectacularly.

Despite lower demand, Russia and Saudi Arabia continued oil production with same rate creating the surplus stocks and lowering the price leading to market crush.

READING