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Between April and October 2020, the International Food Policy Research Institute (IFPRI) and Michigan State University (MSU), with support from the United States Agency of International Development (USAID) and the Livelihoods and Food Security Fund (LIFT), have undertaken analyses of secondary data combined with regular telephone surveys of actors at all stages of Myanmar’s agri-food system in order to better understand the impacts of COVID-19 on the system. These analyses show that the volume of agribusiness has slowed considerably in Myanmar since COVID-19 restrictions were put in place. There is lower demand from farmers for agricultural inputs and mechanization services and lower volumes of produce traded, especially exports to neighboring countries whose borders are closed. All actors in the agri-food system are facing liquidity constraints and experiencing increased difficulties in both borrowing and recovering loans.
Agricultural input retailers play a key role in Myanmar’s agri-food system by supplying farmers with fertilizer, seed, pesticides, and other inputs necessary for successful harvests. Because farm-level input use is an important driver of yields for all major food crops, shocks to the input retail sector have major implications both for rural household welfare and for national food security. COVID-19 and the policies enacted to mitigate its spread have shocked Myanmar’s economy. Agricultural input retailers, like many other businesses, are squeezed between both supply and demand side shocks. On the supply side, agricultural inputs have long, international supply chains that could be disrupted by restrictions on international or internal trade and transport. On the demand side, the shocks to rural households’ incomes, crop prices, and uncertainty could affect input purchases. This research note seeks to help the Ministry of Agriculture, Livestock and Irrigation of the Government of Myanmar and agricultural sector stakeholders understand the related shocks to Myanmar’s agricultural input retailers. We conducted a phone survey with 221 input shop owners and managers to understand (i) the demand-side effects of COVID-19 shocks as reflected in sales of key inputs, such as fertilizers, maize seed, vegetable seeds, and pesticides,the supply-side effects both in general and for key inputs, and (iii) business responses to COVID-19 shocks.
Agricultural input retailers play a key role in Myanmar’s agri-food system by supplying farmers with fertilizer, seed, pesticides, and other inputs necessary for successful harvests. Because farm-level input use is an important driver of yields for all major food crops, shocks to the input retail sector have major implications for the welfare of rural households, as well as for their food security. This policy note presents results from round two of a five-round phone survey of agricultural input retailers. Our purpose is to provide data and insights to the Ministry of Agriculture, Livestock, and Irrigation (MOALI) and other agricultural sector stakeholders to assist them in better understanding COVID-19 related shocks to Myanmar’s agricultural input retailers. The round one results emphasized (i) widespread disruptions from the COVID-19 to both input supply and demand, (ii) higher transportation costs leading to higher input prices, and (iii) dramatically lower revenue expectations for retailers in 2020 compared to 2019.1 This note builds on the round one results by (i) exploring the effects of the COVID-19 crisis since the first-round interviews, (ii) tracking sales changes since the first round of the survey, and (iii) providing more detailed information on retailer credit and transportation.
To understand the effects of recent economic and political disruptions on Myanmar’s maize farmers during the monsoon season, we conducted two telephone surveys with 1,178 farmers in July and September 2021. Key Findings There were widespread disruptions throughout the 2021 monsoon season: 11 percent of respondents were displaced by violence in July, and most farmers had had enforced transportation restrictions in their village tracts (58 percent) and their townships (84 percent). Seventy percent of farmers expect these restrictions to affect their monsoon marketing. Two-thirds of respondents received farm credit for inputs in the 2021 monsoon season, an increase of 3 percentage points relative to 2020, and average credit values increased slightly. Most credit was provided by traders (27 percent receiving), which may be unique to maize production as there are broader credit declines in other parts of the country and maize prices have increased in 2021. Additionally, exports to Thailand have been robust. High fertilizer prices will likely lead to a decline in application rates as 63 percent of farmers reported reduced input use, which will negatively affect yields. Median maize farm sizes fell by one acre in 2021 relative to 2020, though average maize acreages were stable. Pest incidence rates (72 percent reporting problems), especially for fall armyworm (45 percent), were high in July, posing another threat to production. There was a decline in access to formal extension services, particularly for information provided by input companies and government extension agents. Farmers increasingly turned to neighbors for agricultural advice.
National poverty rates in Myanmar have risen dramatically due to economic disruption following the February 1, 2021 military take-over of government. Depending on assumptions about the scale of the economic impacts, household poverty rates are predicted to have risen to between 40 and 50 percent in 2021, compared to 32 percent in 2015 and just under 25 percent in 2017. Between 849,000 and 1.87 million new households are thus living in poverty in 2021 in addition to the estimated 2.86 million households already in poverty in 2015. The poverty impacts of these disruptions are significant not only in the sharp increases in the total number of households in poverty, but also in the substantial deepening of poverty for households that were already poor. By the end of the current financial year, the average poverty gap (expenditure shortfall) is predicted to have increased from 26 percent in 2015 to between 34 and 40 percent for individuals living in poor households.
Agricultural equipment retailers (ER) in Myanmar were originally interviewed by telephone in May 2020 and again in June 2020 to determine how their businesses were being affected by COVID-19 related restrictions. The results of those surveys were published in Myanmar Strategy Support Program Policy Notes 09 and 16, respectively. To trace the continuing impact of the COVID-19 pandemic on their economic activities, a third phone survey of ERs was done in July 2020. This Note reports on the results of this third survey, as well as changes in the businesses of agricultural equipment retailers since the first and the second surveys.
We assess the impact of Ethiopia’s flagship social protection program, the Productive Safety Net Program (PSNP) on the adverse impacts of the COVID-19 pandemic on food and nutrition security of households, mothers, and children. We use both pre-pandemic in-person household survey data and a post-pandemic phone survey. Two thirds of our respondents reported that their incomes had fallen after the pandemic began and almost half reported that their ability to satisfy their food needs had worsened. Employing a household fixed effects difference-in-difference approach, we find that the household food insecurity increased by 11.7 percentage points and the size of the food gap by 0.47 months in the aftermath of the onset of the pandemic. Participation in the PSNP offsets virtually all of this adverse change; the likelihood of becoming food insecure increased by only 2.4 percentage points for PSNP households and the duration of the food gap increased by only 0.13 months. The protective role of PSNP is greater for poorer households and those living in remote areas. Results are robust to definitions of PSNP participation, different estimators and how we account for the non-randomness of mobile phone ownership. PSNP households were less likely to reduce expenditures on health and education by 7.7 percentage points and were less likely to reduce expenditures on agricultural inputs by 13 percentage points. By contrast, mothers’ and children’s diets changed little, despite some changes in the composition of diets with consumption of animal source foods declining significantly.
Agricultural equipment retailers (ER) in Myanmar were originally interviewed by telephone in late May 2020 to determine how their businesses were being affected by COVID-19 related restrictions. The results of that survey were published in Myanmar Strategy Support Program Policy Note 09. To trace the continuing impact of the COVID-19 pandemic on their economic activities, a second phone survey of ERs was done in late June 2020. This Policy Note reports on the results of this second survey.
This paper combines pre-pandemic face-to-face survey data with follow up phone surveys collected in April-May 2020 to quantify the overall and differential impacts of COVID-19 on household food security, labor market participation and local food prices in Nigeria. We exploit spatial variation in exposure to COVID-19 related infections and lockdown measures along with temporal differences in our outcomes of interest using a difference-in-difference approach. We find that those households exposed to higher COVID-19 cases or mobility lockdowns experience a significant increase in measures of food insecurity. Examining possible transmission channels for this effect, we find that COVID-19 significantly reduces labor market participation and increases food prices. We find that impacts differ by economic activities and households. For instance, lockdown measures increased households' experience of food insecurity by 12 percentage points and reduced the probability of participation in non-farm business activities by 13 percentage points. These lockdown measures have smaller impacts on wage-related activities and farming activities. In terms of food security, households relying on non-farm businesses, poorer households, those with school-aged children, and those living in remote and conflicted-affected zones have experienced relatively larger deteriorations in food insecurity. These findings can help inform immediate and medium-term policy responses, including social protection policies aiming at ameliorating the impacts of the pandemic, as well as guide targeting strategies of governments and international donor agencies by identifying the most impacted sub-populations.
Two years after the onset of the COVID-19 pandemic, the health, economic, and social disruptions caused by this global crisis continue to evolve. The impacts of the pandemic are likely to endure for years to come, with poor, marginalized, and vulnerable groups the most affected. In COVID-19 & Global Food Security: Two Years Later, the editors bring together contributions from new IFPRI research, blogs, and the CGIAR COVID-19 Hub to examine the pandemic’s effects on poverty, food security, nutrition, and health around the world. This volume presents key lessons learned on food security and food system resilience in 2020 and 2021 and assesses the effectiveness of policy responses to the crisis. Looking forward, the authors consider how the pandemic experience can inform both recovery and longer-term efforts to build more resilient food systems.