Emerging Impacts of COVID–19 on the South African Food and Beverage Manufacturing Sector

Abstract

This brief presents the result of a rapid assessment on how the lockdown measures have affected the performance of the South African food and beverage manufacturing industry and the critical issues that firms face during and post lockdown. Most firms in the South African food and beverage manufacturing sector were still operating in May 2020, but often at reduced capacity. A sizeable share of firms had to pay higher prices for raw materials, in particular smaller companies. Most firms adjusted their production patterns in response to the lockdown situation by reducing and/or increasing production volumes of some product, especially in the meat, dairy and beverage sub-sectors. Companies for the most part held on to their employees, but at times had to reduce salaries. Most increased shifts to ensure social distancing. Two thirds of companies were impacted by foreign governments’ measures, in particular through delays and additional requirements at the border. To reduce the economic impact of Covid-19 containment measures, companies called for a re-opening of the economy, financial support and assistance in the area of health and safety.