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A Bright Future: Shaping The Culture of Entrepreneurship in Southeast Asia

Home to some of the world’s fastest-growing markets, the past decade saw the rise of more than a dozen unicorns in Southeast Asia, leading the charge in the expansion of the digital economy across the region. The surge in startup success stories from the likes of Grab, Sea, and GoTo shows the promise of the region’s internet economy, and more tech startups are only expected to emerge in the coming years. With some 400 million internet users and home to many young, mobile-first consumers, Southeast Asia has the opportunity to outpace the rest of the world in areas like e-commerce, smartphone-based businesses, and fintech.

Today, Southeast Asia’s micro-, small- and medium-sized enterprises (MSMEs and SMEs) account for over 99 percent of businesses in the region. Backed by a cultural legacy of entrepreneurship, a young, urbanized population, and a digital economy now valued at US$300 billion — the opportunities to grow and scale are not lost on investors. According to Jungle Ventures, valuation figures across Southeast Asia’s tech ecosystem are forecast to hit a whopping US$1 trillion by 2025. With strong interest from investors looking to increase their exposure to the growth profile of this region, it’s clear that the region’s startup ecosystem has come a long way, in a short period of time.

A culture ingrained

Entrepreneurship lies at the heart of the region’s socio-economic landscape. In fact, with over 70 million MSMEs and SMEs in the region today, the appetite for owning and running businesses appears to be somewhat ingrained in the continent’s cultural fabric; and thanks to improved education, technological advancement and increased government investment, the region is now witnessing the rise of a new generation of entrepreneurs and business leaders, across different cultures, backgrounds, and expertise.

From family-run stores to startups, SMEs are a vital source of income and employment in Southeast Asia, and have a widespread presence outside major cities, creating opportunities for work and development in small towns, suburbs, and rural areas. The overall economic growth of the region, combined with burgeoning youth populations and increasingly urban middle-class consumers all come together to create an environment ripe with opportunity for the region’s emerging entrepreneurs. Compared to larger, more established markets like China or India, Southeast Asia is still an early-stage market for venture capital investments — but if the recent fundraising successes of unicorns such as Grab, Carousell, and Bukalapak is any indication, there’s no doubt that startups in Southeast Asia are on the rise.

When one size doesn’t fit all

A market ripe for disruption, Southeast Asia is home to a wide demographic, cultural and linguistic diversity, with many of the countries in the region at various stages in their economic development. According to Monk’s Hill Ventures, roughly half of Southeast Asia’s US$3 trillion GDP is driven by the service sector, yet inefficiencies exist in all of its industry verticals. This gap is where entrepreneurs and SMEs in the region are reimagining business models using tech to create value. Singapore is the economic leader in the region, with the nation’s well-established global connections, advanced IT infrastructure, and sound regulatory foundation making it an ideal place for businesses and startups to flourish. While emerging markets like Indonesia and Vietnam — the latter boasts one of the best tech talent pools across the region — are fertile ground for new businesses to develop innovative, out-of-the-box solutions to existing problems plaguing the market. While the region is already highly interconnected in terms of commerce, the impact of its cultural diversity means that taking a one-size-fits-all approach is not likely to be very effective.

Instead, there is a need for entrepreneurs to identify and address their markets’ pain points on an individual level. For this reason, rather than borrowing from old approaches from the West, founders in Southeast Asia have to reinvent the wheel and recognize the cultural and operational differences unique to each market in the region. This could be the level of digital literacy and existing infrastructure or simply consumer habits, for example in Indonesia cash is very much still king while in Singapore digital and card payments are the norm. By addressing expectations and needs on a country, rather than regional level, businesses will be in a better position to capture the market and deliver exceptional services to their target audiences. This could, for instance, look like giving local teams the autonomy to adjust products, processes, and prices in line with local expectations. That said, while each country in the region is very different, there is much evidence on the ground of economic collaboration, and business conversations in one country often cross borders when it comes to expansion plans, partnerships, capital sources, and access to talent.

Leapfrogging digital transformation

Within the region’s emerging markets, the absence of legacy infrastructures has made it so that many of these entrepreneurs are not burdened by the red tape of bureaucracy and established processes. Many giants in the e-commerce space, such as Lazada, Shopee and Zalora come to mind — by developing their own infrastructures such as logistic fleets and digital banks these players streamline processes and ultimately better serve the needs of their customers. Compounded with mass urbanization across the region, technology has made it much easier for new players to enter the startup space — whether they are MSMEs, or SMEs pivoting to digital. With some of the highest rates of mobile and internet penetration in the world, the region makes for an intensely technologically savvy and literate populace, open to innovation and disruption.

Just like the rest of the world, Covid-19 has served as a catalyst for digital adoption within the region, as consumers had no option but to go online for shopping, banking, and education, among others. Undoubtedly, they are expected to maintain much of their reliance on digital services, as the region continues to leapfrog to new levels of digital adoption, especially in areas like commerce and finance. With the ongoing proliferation of digital services, it is crucial for businesses to keep up and adapt to these changes or risk getting left behind.

Innovation is an integral part of Southeast Asia’s digital identity, and a practice that will continue to keep the region vibrant and competitive. Therefore, it is imperative for entrepreneurs and talents to embrace innovation in order to stay relevant internationally, particularly when it comes to digital transformation. As long as businesses continue to stay up-to-date and open to new business opportunities, and pursue new breakthroughs in technology, Southeast Asia will be able to remain appealing and maintain its edge on the global stage.


Source: Nasdq 

Economic, societal potential of green economy a key growth driver for Asean: CEO of StanChart Asia

ASEAN cannot rest on its laurels and rely on the same growth drivers to guide its future trajectory, particularly with weaker economic recovery expected on the back of increasing Covid-19 cases and renewed lockdowns.

That being said, increased intra-regional cooperation and connectivity is expected to boost regional growth.

"Asean is a bedrock of opportunities, with significant potential for growth - particularly in areas of supply chain diversifications, innovation & technology, and strategic partnerships & digitalisation," said Benjamin Hung, CEO, Asia, Standard Chartered.

According to the survey commissioned by Standard Chartered, 99 per cent of respondents expect growth in production and 96 per cent anticipate growth in revenue.

They identified the large and growing Asean consumer market (69 per cent), access to a global market enabled by a network of Free Trade Agreements (59 per cent) and availability of abundant and skilled workforce (49 per cent) as among the most important drivers for expansion across the region.

But Mr Hung emphasised that corporations must approach business expansions in a "conscientious manner". "In the world of the new business, sustainability is non-negotiable. The sooner businesses recognise that their success is intrinsically tied to the long-term prosperity of our communities, the more they can stand to benefit."


Indeed, one in two executives surveyed said driving sustainability and ESG (environment, social and governance) initiatives is an important area for their companies to focus on, as they look to mitigate risks and challenges.

The survey, which targeted senior executives at 83 companies, also showed entering new partnerships/ joint ventures to increase market presence (53 per cent) and executing digital transformation programmes (52 per cent) as important areas to drive resilient and rebalanced growth in Asean.

The problem is that the heterogeneous nature of Asean markets means that adoption of ESG principles across the region has been disparate.

Despite the region's slow start, local governments and corporates are gradually recognising the economic and societal potentials of the green economy, as noted by Borderless Business: Intra-ASEAN corridor, a series of reports commissioned by Standard Chartered.

ESG and sustainability are big themes for sectors in transition, noted Mr Hung. "In Asean, clients from the commodities sector are particularly receptive to ESG considerations and we support their efforts anywhere from renewable energy asset investments to transforming their supply chains to procure from certified sustainable sources," he said.

"Similarly for the shipping industry, we see clients active in exploring alternative energy set-ups and including ESG targets into their borrowing agreements."

Growth areas

Perhaps unsurprisingly, this renewed focus on sustainability is set to create significant opportunities in areas such as renewable energy, and automotive, particularly, electric cars, and infrastructure.

Energy in particular is at the forefront for the Asean Economic Community (AEC) and has been identified as an integral part of creating an integrated, well-connected and resilient Asean.

The region's electricity consumption was 994 terawatt-hours (TWh) in 2020 and is projected to reach 1,287 TWh by 2025. To meet these energy needs in a sustainable manner, the Asean Plan for Energy Cooperation 2016-2026 (APAEC) has set a target to increase Asean's renewable energy component to 23 per cent of Asean's energy mix by 2025.

This is expected to result in a wide range of opportunities for regional cooperation through APAEC Programme Areas. Within renewables, solar energy is expected to be a significant growth segment, growing at a projected CAGR of 15.9 per cent.

Thailand is the regional leader for energy generation in the two fastest growing segments - solar and wind - with 10.53 TWh generated in 2020, which is expected to grow to 16.88 TWh by 2025. Vietnam is also expected to see maximum growth in these segments, growing from 2.83 TWh in 2020 to a projected 10.35 TWh in 2025, with a CAGR of 29.6 per cent.

Another key growth area highlighted by the report is the automotive sector. The region's well-established automotive hubs - Thailand, Indonesia, Vietnam and Malaysia - puts it in good stead to create an integrated production cluster.

Boosted by strengthened trade linkages across the region through initiatives such as the AEC and the Asean Free Trade Area, automotive manufacturers can capitalise on the added connectivity Regional Comprehensive Economic Partnership (RCEP) brings to explore export opportunities with Asean's major trading partners under the agreement, it noted.

It is also worth noting that regional governments are prioritising sustainable transport with a plethora of incentives being offered for the manufacturing and adoption of electric vehicles.

As countries in Asean target the building of smart cities, they are looking to develop capabilities in autonomous driving technology. Singapore is the regional leader in this aspect and has already begun tests for driverless vehicles; Malaysia and Vietnam have also made headway in this area.

The construction and real estate industry meanwhile is expected to restart its growth trajectory once economic activities resume.

As projects in Asean grow larger in size and increasingly complex, companies will need to look at digital solutions such as Building Information Modelling (BIM) and Internet of Things (IoT) to manage this complexity, noted the report.

The region as a whole has made some headway. Singapore adopted BIM in 2010 while Vietnam approved a 2017-2021 roadmap for implementation of BIM for construction and operation management in 2016.

Other industries on the report's growth watchlist include food and beverage products, which is expected to be buoyed by increasing urbanisation and a growing middle class with higher consumption power, e-commerce and digital platform services; and healthcare services.

Profitability and purpose

"It is important for all economies to have a resilient and cohesive roadmap towards a sustainable future. Through the Asean Comprehensive Framework, an enhanced focus by the local governments on green economies will provide businesses the confidence to invest more into the sustainability agenda and reap their potential benefits," said Mr Hung.

Pressure to get on with the agenda is also coming from the ground.

A separate report by Standard Chartered found that 67 per cent of MNCs state that supply chain emissions account for an average of 73 per cent of their total emissions. In their transition toward net-zero, many see tackling supply chain emissions as the first step. Significantly, they expect to exclude 35 per cent of their current suppliers as they move away from carbon.

Consumers are also becoming more socially conscious about their consumption habits and purchasing choices. According to the World Economic Forum report, Future of Consumption in Fast Growth Consumer Markets: Asean, 80 per cent of respondents claimed to value sustainability and actively made greener lifestyle choices.

As sustainability becomes a non-negotiable, companies need to identify where they are on their net-zero transition journey and re-evaluate their supply chain strategy in view of global and regional carbon reduction commitments, said the report.

It is also worth noting that prioritising sustainability is one of the keys to cement customer loyalty, grow customer base and ultimately increase profitability.

"Beyond profitability and ESG reporting, the aftermath of the pandemic presents an opportunity for companies to redefine their purpose in alignment with ESG principles, and to think of how they can drive sustainability and positive impact whilst still creating value for their stakeholders," it noted.


Source: The Business Times (Singapore)

Date: 13 September 2021

Reference: Economic, societal potential of green economy a key growth driver for Asean, Global Enterprise - THE BUSINESS TIMES 

Contract signing aims to increase rice production

Hiew HY Construction Sdn Bhd and Jurusy Perunding Sdn Bhd have been appointed as the project contractor and project lead consultant for the Phase 2 infrastructure work on the 500-hectare commercial paddy plantation area in Kandol, Belait District.

Held on August 25 at the Public Works Department (JKR), the project is an effort by the Government of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam through the Ministry of Primary Resources and Tourism (MPRT), to increase rice production to improve the country’s food security.

The signatories were JKR Acting Director General Ir Haji Mohd Salleh bin Haji Abdul Karim and Acting Director of Drainage and Sewerage Haji Mazlan bin Haji Abdul Salim, Hiew HY Construction Sdn Bhd Director Chong Chen Kong and Jurusy Perunding Sdn Bhd Director Ir Haji Samat bin Haji Abas.

The Phase 2 infrastructure work is a continuation of the 30-hectare Phase 1 project completed by the end of last year.

Planting for the Kandol Phase 1 was fully carried out by PaddyCo Sdn Bhd, a subsidiary of Darussalam Assets Sdn Bhd. To date, PaddyCo Sdn Bhd has been planting in the Kandol Agricultural Development Area for four seasons starting October 2019 and has produced around 155 metric tonnes of paddy.

The Phase 2 infrastructure work worth more than BND36 million involve a paddy plantation area of 145 hectares as well as the construction of a water reservoir of 58 hectares

Read the full story here.

Cambodia: Meet looks at potential of ASEAN’s SME portal

The Ministry of Industry, Science, Technology and Innovation, the private sector and development partners on September 9 held the first-ever national consultation on “ASEAN Access” via Zoom, to explore ways to use the online portal to develop and expand the market reach of local businesses.

Directed more towards regional small- and medium-sized enterprises (SME), ASEAN Access was launched on June 16 and could potentially be linked to the KhmerSME website, developed by the ministry and scheduled to be launched next month.

The consultation was attended by representatives of Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbH (GIZ), Pact Cambodia, Cambodia Women Entrepreneurs Association (CWEA), Young Entrepreneurs Association of Cambodia (YEAC) and the Office of Small and Medium Enterprises Promotion (Osmep).

The talk aimed to convey the advantages of ASEAN Access to local businesses and invite SMEs to matchmaking events on September 21 and 30, organised by the platform in partnership with Enterprise Europe Network (EEN).

Businesses were also invited to register on the portal to have access to the latest information regarding regulations on international markets, goods and service trade, and e-training and other events.

Speaking at the event, industry ministry’s director-general for Small and Medium Enterprises and Handicraft Chhea Layhy underlined that ASEAN Access provides comprehensive information on trade and market access within ASEAN and beyond.

“SMEs will be able to find new products, opportunities, explore trade and business matchmaking events and stay up-to-date with new business and trade information for the ASEAN region,” he said.

 

Author: Thou Vireak

Source: The Phnom Penh Post

For full article, please click this link

Original publication date: 12 September 2021

ASEAN remains a fast growing region despite the pandemic

Despite the COVID-19 crisis, ASEAN is one of the fastest growing regions in the world, said Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah during the ASEAN Business and Investment Roundtable 2021 on Fintech and Financial Literacy held virtually yesterday.

The minister also said, Bain and Company’s e-Conomy Southeast Asia report noted that the Covid-19 pandemic has led to big shifts across Southeast Asia, highlighting that 40 million people came online for the first time last year, bringing the total number of Internet users in the region to 400 million.

“The Economic Research Institute for ASEAN and East Asia points out that ASEAN consumers are global leaders in terms of e-wallets and digital payment adoption.

“This offers great opportunities but also challenges as we must keep inclusivity in mind and ensure that with the rapid rate of technological change it does not leave anyone behind.

“Financial literacy plays a critical role on inclusivity.

“Not only is it important to understand money and the changing nature of transactions, both for personal and business purposes but digital financial literacy has become essential if we are to achieve our goals of ensuring that everyone can benefit from the advancements in fintech.

“ASEAN governments are continuing to meet virtually to discuss what steps can be taken to help our region continue to be vibrant as we draw closer to the Summit in October,” said the minister.

Read the full article here

Barramundi Group announces plan to list on Euronext Growth Oslo exchange

BANDAR SERI BEGAWAN – Barramundi Group, which is set to operate Brunei’s largest sea bass farm, has announced plans to launch an offering of shares and list its shares on the Euronext Growth Oslo stock exchange.

In a statement issued on Wednesday, the Singapore-based aquaculture company said growing global demand for sea bass and sustainable consumption have prompted its decision to pursue a public listing.

The Group said it will be the first Australasian company and first aquaculture player that specialises in a tropical species on an industry level to be listed on the exchange.

“We believe that this listing will enable us to fully capitalise on the growing global middle class and skyrocketing demand for high-quality proteins that are raised responsibly, with minimal carbon and oceanic impact,” said Andreas von Scholten, chief executive officer of Barramundi Group.

The listing is expected to help the Group further industrialise production across its three ocean farm sites in Australia, Singapore and Brunei, as well as expand its market share.

Barramundi Group is developing a $300 million sea bass farm at Brunei’s Nankivell Offshore Aquaculture Site, with an area of 6,613 hectares.

A 25-hectare site in Kampung Meragang was also earmarked for a hatchery and nursery for the production of sea bass juveniles to be supplied to offshore fish cages.

The sea bass farm, which is expected to operate at full capacity by 2032, planned to increase the volume of fish production to 36,000 metric tonnes worth $324 million a year.

Read the full story here.

E-commerce plan to boost online trade by THB1.3 trillion in 2022

The Cabinet has approved a plan to boost e-commerce trade to 5.35 trillion baht in 2022, the Commerce Ministry announced on Monday (30th August.)

The ministry’s National Electronic Commerce Development Action Plan aims to lift the value of online trade from 4.03 trillion baht in 2019 to 5.35 trillion baht next year – an increase of 1.32 trillion baht.

The plan, which was drawn up by the Electronic Commerce Committee of government and private sector representatives, will increase both domestic and international marketing channels for Thai entrepreneurs, including farmers. It also aims to boost efficiency of doing business by reducing costs and offering access to low-interest funding sources.

Phase 1 of the plan (2021-2022) consists of four strategies: e-Marketplace enhancement and promotion, ecosystem and enabling factors, trust and sustainability, and competency building amid the new normal.

More than 10,000 businesses are expected to register under the plan with the Department of Business Development. Meanwhile, at least 10 government projects will stimulate the e-commerce ecosystem.

BoI’s Asean investment framework gets Cabinet okay

The Cabinet on Tuesday (September 1st) gave the go-ahead to the Asean Investment Facilitation Framework (AIFF) proposed by the Board of Investment (BoI).

It also appointed Deputy PM Supattanapong Punmeechaow, who oversees issues related to the economy and investment, as the Thai representative at the Asean Economics Ministers’ meeting on September 8.

The AIFF, meanwhile, aims to help Asean countries recover from the fallout of Covid-19 by focusing on investment and promoting the region as an important supply source.

The framework covers investment facilitation from several aspects, including immigration, workers, capital, business partners as well as support via the latest technology such as electronic documents and digital platforms.

Nonarit Bisonyabut, a senior researcher at Thailand Development Research Institute, said Asean had the potential to become a key global supply source thanks to its large population.

Source: The Nation Thailand

Logistics expo generates over THB1.2 billion for Thai private sector

Thailand’s international logistics-trade fair this year generated over 1.249 billion baht for Thai businesses, accroding to the Commerce Ministry.

Held from August 25-27, the TILOG Virtual Exhibition 2021 saw 81 Thai companies do business with 40 foreign corporates. The online event also attracted over 24,000 visitors, according to the ministry’s Department of International Trade Promotion (DITP).

A highlight of the exhibition were talks between Japan’s Naha Port and Thai logistics providers. The DITP said Naha Port officials had held discussions about import and export businesses between the two countries.

The department also held a symposium on digital logistics, which attracted over 1,600 attendees.

Those interested in the event can visit www.tilog-ve.com for logistics information and recorded talks until September 27.

Ministry launches e-commerce plan to generate over THB5.3 billion next year

The Department of International Trade Promotion said the e-commerce plan covers four strategies: e-marketplace development, improvement of the environment and other factors related to e-commerce, trust and sustainability of e-commerce, and improved conditions for entrepreneurs.

The Commerce Ministry has revealed details about its national e-commerce plan, which aims to generate over 5.35 billion baht in 2022

The plan was approved by the Cabinet on Monday.

Mallika Boonmeetrakool Mahasook, an adviser to Commerce Minister Jurin Laksanawisit, said Jurin realised the importance of e-commerce in the digital economy, which is one of the country’s main policy focuses.

As such, he had ordered a specific committee to draft a plan to promote e-commerce. Jurin also set a target of boosting the value of e-commerce from 4.03 billion baht in 2019 to 5.35 billion baht in 2022, Malika added.

Source: The Nation Thailand

Thailand offers to become strategic CLMVT, Asean hub for China, GBA

Thailand offered to become a hub connecting Asean countries with Hong Kong and China at the 6th Belt and Road Summit held via teleconferencing on September 1 and 2.

Vice Commerce Minister Dr Sansern Samalapa said Thailand’s Eastern Economic Corridor can easily serve as a link for Guangdong-Hong Kong-Macau Greater Bay Area (GBA) and China’s Belt and Road Initiative (BRI) as well as become a strategic hub for CLMVT and Asean countries.

CLMVT comprises Cambodia, Laos, Myanmar, Vietnam and Thailand, which are also part of the Asean grouping.

Seamless links in both infrastructure and digital technology along BRI will lead to mutual economic benefits and attract investment in EEC’s target industries such as automotive, aviation and logistics.

He said this cooperation will also be economically beneficial for Thailand, especially after the completion of BRI projects like the Thai-Laos-China high-speed railway. This railway will cut down the cost of transport – both goods and people – and help regional economies recover quickly from the Covid-19 crisis.

In addition, China’s foreign trade and investment policies will give Thai businesses greater access to the mainland’s huge market.

Your food prices are at risk as the world runs short of workers

Across the world, a dearth of workers is shaking up food supply chains.

In Vietnam, the army is assisting with the rice harvest. In the U.K., farmers are dumping milk because there are no truckers to collect it. Brazil's robusta coffee beans took 120 days to reap this year, rather than the usual 90. And American meatpackers are trying to lure new employees with Apple Watches while fast-food chains raise the prices of burgers and burritos.

Whether it's fruit pickers, slaughterhouse workers, truckers, warehouse operators, chefs or waiters, the global food ecosystem is buckling due to a shortage of staff. Supplies are getting hit and some employers are forced to raise wages at a double-digit pace. That's threatening to push food prices - already heated by soaring commodities and freight costs - even higher. Prices in August were up 33% from the same month last year, according to an index compiled by the United Nations' Food and Agriculture Organization.

The coronavirus pandemic has helped spark a labor shortfall for many parts of the economy. But the impact is particularly stark in food and agriculture, which are among the world's least-automated industries. Food security is a sensitive issue in many parts of the world and thin margins mean rising costs generally pass through to buyers, according to Boston Consulting Group.

"Almost certainly there is disruption," said Decker Walker, BCG's agribusiness expert in Chicago. Effects vary among locations and products, he said, but "the general theme seems to be: The roles with the least desirable working conditions are actually the ones that we have the most pain with."

There are signs the labor shortfall is curbing supplies. In the U.S., wholesale distributors like Sysco Corp. and United Natural Foods Inc. are reporting production delays and slowdowns for items ranging from bacon and cheese to coconut water and spices. In the U.K., some stores are running low on staples like bread and chicken, while McDonald's Corp. ran out of milkshakes in August.

"We have family-wage, great jobs that have been open, that we've been recruiting really hard for and have had trouble filling," said Patrick Criteser, chief executive officer of Tillamook County Creamery Association. The Oregon-based dairy co-operative recently ran so short of workers that a board member had to skip an operational meeting to help out in the fields. "With the inflation we're seeing in the business and the inflation that we're seeing at the farm level, it's going to translate to the shelf."

Shortages are hitting farms, processors and restaurants alike. Malaysia, the world's No.2 palm oil producer, has lost about 30% of potential output of the edible oil used in everything from chocolate to margarine. Shrimp production in southern Vietnam - one of the world's top exporters - has dropped by 60% to 70% from before the pandemic. And a fifth of tomato production in the south of Italy has been lost this year, due to the scorching heat and transport paralysis, according to the farmers' association CIA.

"I have been in this business since the '80s, but I have never seen a situation like this," said Michele Ferrandino, a farmer in Foggia. "Tomatoes are very perishable goods. There were not enough trucks to transport the crop to the processing plants, in those crucial days" of the harvest, he said.

Canceled or delayed deliveries have also forced British dairy farmers like Mike King in South Gloucestershire, England to dump milk while stores run short. King estimates he has lost some 20,000 liters (5,283 gallons), and says some farmers have resorted to milking their cattle less frequently due to staffing shortfalls.

Even as restaurants and other businesses re-open in the U.S. and parts of Europe - boosting demand for goods such as meat and bottled drinks - the delta variant is spreading in places like Southeast Asia, curbing primary production. Other, longer-established pandemic effects are still causing problems too: Covid outbreaks continue to crop up in meat- and fish-processing plants, forcing temporary closures, and border restrictions in countries from the U.K. to Thailand are limiting the supply of migrant workers.

In some places, the scramble for staff is compounded by local issues, such as difficult and dangerous farmwork conditions caused by a record U.S. heatwave, or the disruption of Brexit.

As a result, employers face another hurdle: Workers have plenty of options.

The current economy is creating "choice where choices may not have existed in the past," said BCG's Walker. When "the entire world is short-staffed," filling less desirable jobs gets more difficult, he said.

Employment in the food supply chain can certainly be tough. Whether it's backbreaking strawberry picking, insecure slaughterhouse work or the fast-paced, high-pressure environment of a restaurant kitchen, many jobs are physically taxing, short-term, poorly paid - or a combination of all three.

With more jobs available, Australian workers who might previously have settled for positions at meat processing plants in sparsely populated areas can opt for work in busier towns instead. Many of the European Union citizens who might typically travel to the U.K. to work on farms, in haulage or serving coffees are choosing to stay in their home countries or on the continent. American laborers who have struggled with sweltering heat in the fields may choose the cool interiors of a store instead.

Jon DeVaney, president of the Washington State Tree Fruit Association, acknowledges that work such as fruit picking is demanding.

"It is a physical job," he said. "You are picking fruit and carrying it up and down ladders, so if your alternative is pushing buttons on a cash register, that might be more appealing."

Higher salaries and perks can sweeten the deal. Chipotle Mexican Grill Inc. recently raised U.S. menu prices by as much as 4% after increasing average pay to $15 an hour; in Canada the company is offering a referral bonus to help with recruitment. Pork-processing workers at Smithfield Foods in South Dakota get freebies like Apple Watches or iPads once they complete their first 60 days, a company official said. Pizza chain Rossopomodoro, which is headquartered in Europe, has been forced to boost its base pay by 50% in London, CEO Daniele di Martino said.

But often money is not enough. Workers are increasingly demanding greater protection from the coronavirus as well as higher wages, according to Sunny Verghese, CEO of agricultural trading giant Olam International Ltd.

While meatpackers have made significant safety progress since last year, they are up against the delta variant now. That has slowed the amount of cattle moving through slaughterhouses at meat giant Tyson Foods.

"We were on a good trajectory and then the delta variant showed up, and we've taken a step back as result of that," CEO Donnie King said on a call with investors last month. "Essentially it takes six days to get five days' worth of work."

Worker shortfalls aren't happening everywhere, and the effects aren't evenly distributed. Much of mainland Europe has not felt the same crippling shortages as the U.K., where Brexit constrained the flow of EU workers. China has been largely unaffected and in India, while inflation is still a worry, labor is plentiful and agriculture has been mostly untouched by virus restrictions.

Elsewhere, labor is just one of several headaches for the world's food ecosystem. Extreme weather from Brazil to France has affected harvests. Surging crop prices have pushed up the price of feeding livestock - and therefore the price of meat. Transport costs have skyrocketed due to soaring demand, container shortages and overwhelmed ports, not helped by the temporary partial closure of China's Ningbo-Zhoushan, the world's third-busiest cargo port.

Still, the shortage of workers threatens to further add to costs, whether through wage increases or supply shortfalls. And the issue won't disappear when the pandemic ends: The share of workers employed in agriculture has been falling for decades amid a shift to cities and services sectors, and hiring for some jobs was tough long before Covid. These more permanent changes to the labor market call for technological solutions, and investment in automation and robotics has accelerated during the pandemic.

In the U.S., automated tractors, robotic milkers and machines such as carrot planters are replacing human labor. Meanwhile, U.K. farmers are trialling robots to pick strawberries, lettuce or broccoli. Harvesting tools have helped Brazil's robusta-coffee farmers cut dependence on manual workers to one-fifth of the number needed just a few years ago, according to Edimilson Calegari, general manager at Espirito Santo-based cooperative Cooabriel. While the country's labor shortfall extended the length of the harvest, he said, technology has lessened its impact.

Still, it will take years before farmers really take to robots, according to Cindy van Rijswick, a senior analyst at Rabobank in Utrecht who specializes in horticulture.

"In the end, prices for food have to go up to compensate workers in a better way and to find solutions," van Rijswick said. "They just cost money and we need to be willing to pay that."

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