England (Commonweath Union)_ Food inflation in the UK has led to price increases as a consequence of factors like Brexit, COVID-19, labor shortages, harsh weather, and the recent conflict in Ukraine. Even more worrying is the fact that, as the market approaches the difficult holiday season, the potential of store empty shelves and food and drink shortages, both for completed items and supplies, is becoming very real.
According to the most recent findings of the European Commission, one of the main ingredient shortages is olive oil, whose production is expected to drop by about 25% this year due to poor harvests brought on by high temperatures during the flowering period. According to reports from the Guardian, avian flu, rising fuel and electricity costs, and the cost of chicken feed are all having a significant influence on the UK egg industry, with some suppliers finding it difficult to stay in business.
Meanwhile, a number of media outlets, including the BBC, have noted a shortage of Dijon mustard, which has been made worse by the conflict in Ukraine, which has also affected grain deliveries. Production has decreased by about 40%, and Russia has suspended its participation in a deal that the UN brokered to ensure the export of Ukrainian grain through the Black Sea. On the other hand, as Christmas draws near, the UK government is attempting to allay worries about the country’s supply of turkeys after the National Farmers’ Union mentioned bird flu as a potential source of disruption this season. The list goes on and, taken together, presents a somewhat dismal image.
Finding new ingredients and finished goods suppliers for UK food and drink makers and retailers may be a difficult effort in normal market conditions, leaving a lengthy trail of paperwork, but such unpredictable market conditions only serve to worsen the entire process. Data has recently become a valuable commodity among supply chain managers, according to a recent article in Food Manufacture, and technology to track and map the sourcing and transportation of commodities is now “intrinsic in the optimum operation of food and drink enterprises”. The FMCG grocery chain does, in fact, lag behind other industries in terms of automation and digitalization.
