UK Food Crisis 2020

UK Food Crisis
2020

EXECURIVE SUMMARY
COVID-19 is one the biggest crisis witnessed not only this decade but in this century.
The pandemic exposed many health risks before the world, but its boundaries were not only
limited to health factors but it also interrupted economic, travel, administrative, social or
altruistic, educational and all other activities as well . Therefore, it was not only a health crisis
but a crisis of holistic nature. It proved detrimental to financial health of people as well. As the
virus was seen spreading through touch and respiration. Governments thought most appropriate
tool as Lockdown. Lockdown is a tool meaning temporary shutdown or suspension of economic
activities and curbing free movement of people. Also under Lockdown borders went closed at for
restricting entry of infectious person from outside and exit to stop exposure of insiders to
infectious areas. Lockdown was also set by UK government, to contain spread of virus in
country. The UK government intended a required cause. But effects that were seen were different
from positive results in the country. The virus spread could not be get controlled but financial
crisis together with food crisis were triggered and caught people badly making them fall under a
very vicious circumstances, not only their health was affected but deteriorated their lifestyle for
longer period.

Table of Contents
EXECURIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Understanding Supply............................................................................................................5
Understanding Demand..........................................................................................................9
Understanding Equilibrium..................................................................................................12
Understanding Shortages and Surplus..................................................................................12
TASK 2..........................................................................................................................................13
Economic Principles of Market Failure................................................................................13
Interventions of Government................................................................................................13
Disagreeing with Government interventions........................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and Journals...............................................................................................................17

INTRODUCTION
Lock-down was adopted as a preventive measure for containing spread COVID-19. It
was adopted in United Kingdom and many other countries, resulted in making society more
vulnerable and these effects were very badly visible in UK. Restricted economic activities and
curbs in free movements of goods and human capital, in combined led to arise of these problems
of supplies. Also restrictions from foreign market deteriorated these crisis further. Social and
economic divide in UK increased more (Souza-Monteiro and Hooker, 2017).
In this report, an analysis of food crisis occurred in UK as result of virus upsurge and
lockdown measures, is made. This begins from understanding basic principles of demand and
supply in relation to crisis of UK. Followed by, understanding market equilibrium and its
disturbances, effects relating to crisis. And, issues of shortages and surpluses to that of UK crisis
are discussed. Also principles of market failure and government interventions are helpful in
getting knowledge of issue holistically.
TASK 1
The situations of food products crisis that was surged in the United Kingdom was result
of multiple wrong decisions and mishandling by government. At first instance crisis was bought
by measure of Lockdown, whose objective was different. It had restricted every economic
activities. Also agriculture was disrupted and as a result enough production of production of food
grains was not possible to meet domestic requirements. It pressurised existing stock of food
products. Secondly, supply of food and meat products from countries which were having trade
exchanges was not possible as borders were closed, thus these disruptions worsened situation
more. However, these problems were caused in earlier phases of crisis. Extension of lockdown to
many months was main reason to cause hurt. Thirdly, in next phase, Suppliers became reluctant
in releasing stock of food products with them in market, because they were apprehensive of
supply of food products in future. These all factors, together resulted in scarcity of food products.
Also, it is worth mentioning that, when new strain of virus was detected from UK, many
countries became more restrictive in making any trade with country.
For studying and understanding the food crisis in UK economy of year 2020 is better
conducted in report considering from core. The report made study of this issue by usage of