The Food & Drink Federation (FDF) has warned that the escalating crisis in Ukraine will impact global food supplies and the price of key commodities.
FDF’s Chief Executive, Karen Betts, stressed that businesses in the sector wanted to “do the right thing” in ensuring they abide by the measures taken by governments in response to Russian aggression.
She added: “We anticipate that some food and drink companies will experience supply chain disruption as a result of the war in Ukraine, given that commodities, such as grain and sunflower oil, as well as other inputs, including packaging, could be affected.
“We will work through these as efficiently as possible, but – with manufacturers also exposed to further rises in energy prices – this could well add to current inflation.”
Data released this week by Kantar showed that grocery price inflation had accelerated to 4.3% in February, up from 3.8% the month before. Apart from the start of the pandemic, when grocers cut promotional deals to maintain availability, this was the fastest rate of inflation Kantar had recorded since September 2013, with it also warning that prices could be pushed higher by the conflict in Ukraine.
