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Top retail bosses are this afternoon having what I’ve been told are “clear the air” talks with Government over No deal food supply, specifically its claims there would be no impact on fresh food... also increasingly concerned about “blame game”. BLOG: bbc.com/news/business-…
Background here is that in general they had been supportive of.impressed by work CDL Gove had done at Defra, and were thus extremely surprised by his claim on BBC earlier this month “there will be no shortages of fresh food” - immediately rebutted by industry groups /1
..indeed Yellowhammer document forced to be released by Commons, specifically says: “Certain types of fresh food supply will decrease”...& although predicted No deal disruption across Channel is lower, No deal at end October v bad timing re reliance on EU/ lack of warehousing /2
... so my understanding was some major retailers demanded a meeting with PM Johnson - they got a meeting today with Gove on this...But some starting to fear they are being fitted up as part of a blame game from this new administration for any disruption. Not great for trust. /3
.. specific issue with Government playing down impact of localised narrow supply difficulties - that if they subsequently come to pass, in an age of social media, some retailers fear it will be more difficult to persuade all consumers to maintain normal consumption habits - /4
Wider issue, industry/others working out eg “who should reassure public that localised disruption in certain type of fresh food shouldnt affect other supplies?”. Some involved in planning fear public low trust in politicians mean attempts to reassure would have opposite effect /5
But faced with fears of blame game, retailers reluctant to be the face of having to reassure about consequences of government policy not of their making... /6
Minds are being focused right now by the fact contracts for supply are being penned for November onwards, and will need to be finalised with financial penalties etc for non-supply in next fortnight ... /7
One top retailer told me the October No Deal effect is marked. They had 4 weeks stockpile for March Brexit. Now its 9-14 days, mainly due to warehouse space... retailers also reviewing manner of shelves clearing in fuel crisis/ beast from east /8
Industry and government will hold a UK-wide “tabletop” exercise (ie a wargaming exercise) to “test the coordinated response for the disruption to food supply and potential public response” - revealed in Welsh govt No deal documents this week. /9
As it says in the blog, the Yellowhammer No Deal conclusion that “Certain types of fresh food supply will decrease” was a “reasonable worst case assumption” rather than an internal Government prediction of what will happen. /10
