Impact of the COVID-19 Pandemic on Agri-Food Companies in the Region of Extremadura (Spain)

Abstract

The coronavirus pandemic is having an economic impact, previously non-existent, on the world economy. The objective of this study is to analyze the impact of COVID-19 on agri-food companies in the region of Extremadura (Spain). A multiple-case study based on in-depth interviews was carried out in the period February 2020–January 2021. The results reveal the existence of negative and positive impacts, both financial (decrease in turnover; decrease/displacement in the demand for products; budget reduction in R&D projects; increase in certain product sales) and operational (difficulty in marketing activities, lack of staff, stoppage in company activity, and supply problems), depending, principally, on the nature of the products, the changes generated in consumer behavior, and mobility problems. Likewise, changes were observed in processes (search of clients in other markets, increased use of technology in communication and marketing activities, and development of new products) and procedures (reorganization of personnel activities, implementation of new health protocols) in companies to overcome the obstacles imposed by the new situation. In conclusion, the change in surrounding conditions, and the characteristics of the spread of the pandemic, have impacted on the strategies, behavior, processes, dynamics and results of organizations regardless of their size and the nature of their work product or service.