Southeast Asia's agricultural supply chain is broken

The article highlights the significant disruptions to the global agricultural market, particularly in Southeast Asia, due to the ongoing Covid-19 pandemic. The pandemic has led to travel restrictions and lockdowns in Malaysia and Vietnam, the world's second-largest palm oil producer and the world's second-largest coffee exporter, respectively. These disruptions have caused a surge in raw material prices, such as palm oil and coffee, which are used in consumer goods and industrial processes. The rise in palm oil prices is attributed to increased demand, lower yields, and a decrease in labor due to travel restrictions. The coffee industry is facing challenges due to social distancing measures in Vietnam and adverse weather conditions in Brazil, the world's largest coffee exporter. These challenges have resulted in concerns about supply and significant price increases for both robusta and arabica coffee. The article notes that these supply shocks and price increases are causing concern for consumer goods companies and are likely to impact consumers.