The Chief Executive of the Food and Drink Federation (FDF) has urged the Government to act now to ease soaring food price inflation by enabling the industry to react to real-time to supply chain impacts and review all upcoming regulation.
Speaking at the organisation’s annual conference today, Karen Betts said Russia’s invasion of Ukraine has been a genuine geopolitical, energy and commodity shock that “will have serious ramifications for us all, across Europe and globally.”
She added to recent warnings across the industry that the conflict will have serious ramifications in the UK including “rising costs, rising inflation and unpredictable supply chains” that will mean further food price rises are now “inevitable”.
The effects of the war are already being felt in the supply chain. Energy prices are soaring while shortages of sunflower oil and wheat are causing huge spikes in global market prices. These impacts are hitting an industry only just starting to recover from the strains of the pandemic.
The Chief Executive used her speech to call on the UK Government to act now to ease the supply chain pressures on food and drink companies and support the millions of vulnerable households already suffering from the mounting cost-of-living crisis.
Betts wants ministers to react quickly and with greater flexibility for when ingredients become unavailable; called for a National Food Security Council to enable industry and Whitehall to react in real-time to supply chain impacts; and to urgently review all upcoming regulation to avoid unnecessary costs being placed on businesses and ultimately shoppers, claiming “the UK Government was once a beacon for the better regulation agenda – it should strive to be so again.”
She also issued a message to the food and drink sector itself, telling FDF’s members that it is “critical for our industry’s long-term growth and success, and to the economy more broadly” that they continue to invest in productivity and growth.
Betts set out the case for more money to be spent on skills, new technology and more sustainable products, while urging manufacturers not to lose sight of their Net Zero ambitions and endeavour to seize new trade opportunities.
NAM Implications:
- Key will be those facing real cost increases being able to pass on via price.
- (and monitoring for possible opportunistic price rises in some cases?)
- Meanwhile, Karen Betts has sufficient government experience to make an impact.
- Fingers crossed, we are going to need it…
