How COVID-19 Supply Shock Affects Milk & Dairy Prices
🥛 Milk & Dairy prices could rise up to +18.6% in 🇵🇰 Pakistan under a full pass-through scenario driven by COVID-19 Supply Shock (Jan 2020 – Dec 2021).
Scenario ceiling only. All figures show an upper-bound assuming 100% pass-through. Actual retail prices depend on competition, subsidies, logistics, and market structure.
Commodity shocks driving this scenario
Top 5 most affected countries
PKR fell 12%, fiscal pressure from stimulus spending, energy import costs volatile
Tourism revenue collapsed, but EGP held steady under managed float regime
Oil revenue collapse as producer, NGN fell 12%, food import costs rose
Central bank rate cuts drove TRY down 55%, amplifying all imported costs
Remittance-dependent economy resilient, PHP stable, food supply chain disruptions
Bottom 5 least affected countries
BRL lost 26% vs USD, but agricultural exporter benefited from high commodity prices
Palm oil export restrictions, IDR stable, subsidized fuel cushioned impact
Supply chain disruptions, INR fell 4%, cooking oil and edible oil import costs surged
MAD appreciated 3%, tourism hit but trade balance improved on lower oil prices initially
Pre-war economy, UAH fell 13%, moderate energy and grain trade disruption
Important caveats
- All figures assume 100% pass-through of upstream cost changes. In practice, realized impacts are typically 55-75% of the ceiling.
- Government subsidies, price controls, and strategic reserves can significantly reduce actual consumer impacts.
- Rankings reflect structural vulnerability (import dependence, FX exposure) rather than real-time prices.
- Within-country variation (urban vs rural, coastal vs inland) is not captured at this resolution.