The Covid-19 pandemic will represent a shift towards a different form of globalization and, most likely, a different way of life.
This opinion comes from Emmanuel Faber, CEO of Danone, who confirmed in an interview with the Spanish newspaper El País that the company is facing the challenge of responding under pressure to the high demand for its products.
“ Some say that what is happening now is not at all a consequence of globalization. But I think it is the consequence of not having taken into account, for a century, an essential factor in our mode of development: our relationship with nature. It has been considered as a resource and nothing more, when it is much more than that: it is the foundation of our ability to live, to develop and to be resilient ,” he considers.
According to Emmanuel Faber, the loss of biodiversity, urbanization, and intensive agriculture have brought wild species and ecosystems closer to human habitats, a proximity that has ultimately facilitated the transmission of viruses such as SARS-CoV-2, the cause of Covid-19.
Targeted agri-food sector
For the agri-food sector, the virus has a more immediate and tangible effect, with many companies and workers having to continue producing and distributing at risk while trying to reorganize. “ Restaurants, schools, company canteens are closed. The formats, recipes, and products are not the same. In all countries, isolation resulted in a strong accumulation of stocks by consumers, which lasted more or less a week. Then came the digestion of these stocks, so to speak, and trade slowed down for a week. And then, the rhythm of the new system kicked in .”
For Danone, the difficulty of these " accordion effects " in the supply chain is that, nowadays, small formats in water bottles are almost no longer effective, because they are usually consumed outside the home. " As a result, we will have to adapt our production lines to offer larger formats ," such as water or yogurt packs intended for home consumption and for sale in supermarkets or e-commerce.
Adjusted production
The closure of borders in Europe has forced the agri-food sector to adapt in order to maintain production, leading Emmanuel Faber to further emphasize one of the principles he proclaimed before this crisis: the local nature of production, even for global companies. “ 95% of what we produce is consumed in the countries where it is produced. This crisis, not only during the isolation phase but also afterwards, will accentuate this phenomenon of relocalization of agriculture and food. This does not mean that borders should be closed. Borders should remain open ,” he argues.
Emmanuel Faber insists that, while it is not desirable for the coronavirus to end globalization, it will need to be different. “ This will necessarily translate into a greater awareness of the importance and urgency of two things simultaneously: climate justice, on the one hand, with the inclusion of the climate agenda in our economic and social activities, and social justice, on the other. One cannot exist without the other .”
