How processed food factories are handling COVID-19 shocks

Food companies have not been spared from the economic impacts of the COVID-19 pandemic. Africa Improved Foods, a leading company in the region, has managed to weather the storm by implementing strategic measures to mitigate the effects of the crisis. Jean-Marie Prosper Ndayiragije, the Country Manager at Africa Improved Foods, provided insight into how the company has navigated the challenges brought on by the global pandemic. He mentioned that the company has faced disruptions and delays in the supply chain logistics, resulting in goods not being available when needed. However, Africa Improved Foods has been able to continue running by building up a safety stock of raw materials to offset these challenges. The company's proactive approach has enabled them to maintain operations despite the hurdles faced. In terms of revenue flow, Ndayiragije explained that the challenges did not significantly impact the company's revenue. By anticipatively building a safety stock of key raw materials, Africa Improved Foods ensured that production could continue seamlessly even in the face of supply chain disruptions. While market penetration and share have remained stable for the company, there is a possibility of an increase in demand for relief goods during times of crisis like the current pandemic. The proactive measures taken by Africa Improved Foods have positioned them well to capitalize on potential increases in demand. Addressing the issue of supply chain challenges, Ndayiragije highlighted the company's policy of maintaining a safety stock to mitigate risks during unexpected events. Africa Improved Foods has been proactive in replenishing the safety stock to ensure a steady supply of raw materials for production. The company's ability to adapt and find creative solutions, such as seeking alternative suppliers in different countries, has been instrumental in mitigating the impact of supply chain disruptions. While the pandemic has presented challenges, it has not deterred Africa Improved Foods from pursuing its short-term and long-term goals. Despite the delays and disruptions, the company remains focused on its business objectives. Looking ahead, Ndayiragije acknowledged that returning to business as usual post-COVID-19 may take some time. The company anticipates a need to maintain higher inventories and implement precautionary measures to ensure continuity in operations. Africa Improved Foods is prepared to navigate the uncertainties ahead by staying agile and adaptable. When asked about the possibility of introducing new products in 2020, Ndayiragije confirmed that the company remains committed to its product development plans. Despite the evolving situation, Africa Improved Foods is dedicated to innovation and creativity in product offerings, staying true to its mission of delivering high-quality food products to consumers.