Australia has implemented a nationwide lockdown that will likely remain for at least 3 months. While multiple states have shut their borders and non-essential services have been closed, the movement of food supply across state lines remains minimally interrupted.
MEASURES
- State Governments continue to double down on restrictions on personal movement, including enforcing social distancing.
- Non-essential services have been clearly defined and will remain closed/restricted, while there is no formal process for awarding an “essential service” status.
- Most states have shut their borders and interstate, non-essential travel is prohibited. However, essential workers and services are exempted.
- The Federal Government has announced a third stimulus package worth A$130 billion to provide replacement wages and support businesses to avoid economic collapse.
- An air freight support package for exports to key markets (including China, Japan and Singapore) worth A$10 million has also been introduced.
IMPACT ON FOOD SUPPLY CHAIN
- During the lockdown, supermarkets, pharmacies, freight and retail continue to trade while cafes and restaurants are only permitted to offer takeaway and delivery services.
- Food production remain active and businesses are reorganizing their operations to accomodate to social distancing rules.
- Despite the closure of borders, the flow of food and food products between states remain minimally interrupted.
- As other countries go into lockdown, it can be anticipated that Australia may eventually face a shortage of raw materials sourced from overseas. Such supply chain concerns may push businesses to source domestically.
- Singapore and Australia have agreed to keep their markets open and supply chains running.