The rapid spread of the novel coronavirus (COVID-19) at a global level is causing a wreck across several industries, including restaurants, retail, and travel, among others. The alarming numbers of infected and deceased individuals due to the virus are a major concern across the world. As per the recent genomic sequencing analysis published by Scripps Research Institute, California, the possibility of COVID-19 originating from wet markets of Wuhan, China is uncertain.

As per the observations in the research, humans came in contact with the virus in its evolved state through an intermediate animal. The intermediate animal is likely to have the ACE2 gene encoding, which is somewhat similar to that in humans, for the pathogen to evolve and transmit to humans. The animals that fit this description include civets, goats, pangolins, cows, buffalos, and pigs. All these animals are not only sold through wet markets but also reared in farms.

Although the research report was released recently, the impact of COVID-19 on the livestock industry has been witnessed for quite some time. This outbreak generated a level of uncertainty in the market, owing to the closure of numerous restaurants, hotels, and other outlets. This led to the plummeting sale of cattle and other meat products in the market.

Here’s what analyst at BIS Research has to say at the impact of coronavirus on the livestock industry.

How is the livestock industry getting affected due to the COVID-19 outbreak?

The first and the most influential effect of the COVID-19 spread on the livestock industry is a sharp decline in the demand for cattle, pig, and poultry meat among consumers. This decline in demand can trigger several other effects, such as a decline in the price of meat products, further leading to a decrease in the profit margins of cattle growers globally.

Another impact that the industry is likely to witness due to the COVID-19 outbreak is the unavailability or limited availability of regular and fermented feed for several types of animals, including poultry, pigs, and cattle, that are used during the breeding and rearing process. The unavailability of the feed for animals is expected to occur mainly due to the stressed or interrupted supply chain and logistics services, along with limited availability of raw materials that are required to prepare the  feed for animals.

Moreover, increasing stringency in regulations related to the sanitation of cattle and poultry farms, due to the increasing threat of coronavirus, can also impact the economies of scale of the livestock farms. Another short-term impact is the unavailability of manpower at meat processing units caused by the shutting down of the units, further resulting in huge productivity losses. In addition, there are several other factors, such as decline in exports, decline in productivity, and closing of slaughter shops, that can affect the profitability and viability of meat processing units and livestock farms.

Another major impact on the livestock industry is the switch of consumers from meat and animal-based products to plant-based foods and beverages, including products such as meat, eggs, dairy products, and beverages. Since such foods provide same flavor, texture, and overall experience of eating meat, along with a high degree of consumer satisfaction, it is easier for consumers to switch to these alternatives.

What are the possible solutions that can help the livestock industry to control the spread of pandemics like coronavirus in the future?

At BIS Research, analysts target and produce comprehensive studies around the technologies that have the potential to disrupt the global markets in the future. In light of the recent COVID-19 pandemic, the study of animal genetics, along with livestock monitoring and management, can play a vital role in the near future to control the spread of such infections.

Animal genetics focuses on the study of genetic disease and trait testing in animals. The genetic study of animals is expected to help in improving the quality of cattle and the efficiency of breeding process for pigs and poultry with desired quality of nutrients. The study of animal genetics can also help in enhancing the genetic engineering of livestock and can improve their immunity level against certain diseases. Further, advanced studies carried out on animal genetics are expected to provide insights on how the quality of meat can be enhanced to fulfill the growing demand for high quality animal protein.  

The study of animal genetics is also expected to be helpful in screening the molecular structure of animals and further in identifying the presence of different types of viruses. It is also expected to help in detecting the presence of harmful microbes, such as the coronavirus, which can potentially spread to humans.

Also, the inclusion of fermented feed products in the diets of animals can ensure that the animals in poultry, cattle, and beef get sufficient nutrients and fulfill the increasing global demand for animal proteins. The fermented feed takes care of the right balance of components, including amino acids, vitamins and minerals, organic acid, probiotics and prebiotics, and enzymes, among others, in the livestock.