Risk perception and determinants in small‐ and medium‐sized agri‐food enterprises amidst the COVID‐19 pandemic: Evidence from Egypt

Abstract

The coronavirus disease‐2019 (COVID‐19) pandemic has disrupted many activities along agri‐food supply chains in developing countries and posed unprecedented challenges in particular to small and medium agri‐food enterprises (SMEs). Drawing on a survey of 166 Egyptian agri‐food SMEs, this study investigates differences in‐ and determinants of COVID‐19 business risk perception among these enterprises. The empirical results showed that risk perception was highly asymmetric across geographical regions. Enterprises with longer cash flow coverage periods and higher values of total assets perceived significantly lower risk levels, as cash and assets functioned as a buffer against the impact of COVID‐19. The findings of the study imply that the “just‐in‐time” approach and the absence of a proactive and preventative stance to risk management reduced the resilience of agri‐food SMEs to the risks presented by the pandemic. Generally, enterprises that operate both in domestic and export markets perceived lower COVID‐19 risks. Finally, the main export destination to which the surveyed enterprises export was a significant determinant of their risk perception. These findings could be useful to managers of agri‐food businesses in terms of better understanding of risks and promotion of risk management practices. More so, they can help design effective policy interventions to mitigate the impacts of the pandemic on Egyptian agri‐food SMEs and build up their resilience to future pandemics and shocks.

COVID-19: From health crises to food security anxiety and policy implications

“…international markets, business travel, tourism) are often the entry points for the virus and have been particularly hard hit. In the same context, Abu Hatab et al ( 2020 ) attribute the spatial heterogeneity of the impacts of COVID-19 between rural and urban areas to population density, which is traditionally greater in urban centres of African countries. So are enforcements of governments’ containment measures, which are stricter with negative to violent repercussions if disobeyed, in African cities and towns.…”

Determinants of SARS-CoV-2 Impacts on Small-Scale Commercial Broiler Production Systems in Egypt: Implications for Mitigation Strategies

“…Following the review of literature, presented in the previous section of this paper, on the impact of COVID-19 on small producers and enterprises in developing countries, e.g., [ 8 , 17 , 18 , 25 ], a structured questionnaire was developed in line with the objective of the study. The questionnaire was discussed with a selected small group of practitioners and researchers of broiler production who have experience in poultry farming in the selected areas.…”

“…Furthermore, movement restrictions and blockages of transport routes during the pandemic were particularly obstructive for SCBFs because these measures disrupted access to production inputs (e.g., improved breeds, concentrate feeds, medicine, and vaccines), delivery, and marketing and, hence, led to the accumulation of production on the farms, leaving many SCBFs unable to sell their products [ 39 ]. Although the Egyptian government reacted to the economic impact of COVID-19 on small businesses by enacting fiscal and financial measures to alleviate liquidity constraints and facilitate continued production, many small businesses, including SCBFs, were excluded from these schemes due to a lack of official data about their activities [ 25 ]. In recognition of the role that SCBFs play in protein supply, as well as their significant contributions to employment, livelihoods, and food security, it is therefore important to understand the current impact of the pandemic on them in order to develop appropriate mitigation and adaptation strategies and build resilience to future pandemics.…”

“…In this context, small-scale poultry producers, in particular, struggled with several COVID-19 challenges, including disruptions in supply chains, a shortage of labor, and the malfunctioning of livestock markets, as well as price volatility and changes in consumer purchasing behavior [ 23 , 24 ]. Abu Hatab et al [ 25 ] identified three major causes of the negative effects of the pandemic on small-scale poultry producers as compared to larger producers. First, small-scale producers and firms in these countries rely more heavily on labor than on machinery, and, thus, their poultry production has been especially compromised by containment measures and lockdowns.…”

“…Second, small-scale producers in developing countries have limited logistical and financial capacity to implement hygiene measures, which, in turn, increases their vulnerability to COVID-19 effects. Third, the majority of small-scale agrifood-producing farms, including poultry farms, operate informally and, therefore, are excluded from the stimulus plans that governments have offered to private businesses [ 25 ].…”