Tl;dr: The situation is extremely serious. And without Government action, it is going to get worse, very soon.
Some UK food supply chains are now at breaking point.
And, yes, Christmas is at risk.
🚨🚨
The results of an @FDFScotland survey last week of companies in the food & drink supply chain is a big, flashing, warning sign:
👉93% of companies have vacancies they are struggling to fill
👉97% believe that situation will be worse in future.
A focus on solutions to labour shortages is more important than debating the causes.
BUT, Brexit has been an enormous shock to the labour market; a Brexit implemented in the middle of a pandemic, when supply chains were already straining. #BrexitFoodShortages
The labour crisis is not all about Brexit tho. It’s way more complex than that. But because it’s so obviously a factor, political action is elusive. Brexit has created a world where too often problems are denied, warnings ignored & evidence is dismissed
The current evidence can’t be dismissed. Staff shortages are everywhere in the food supply chain, from farm to manufacturer to haulier.
And if you think gaps on supermarket shelves are worrying, remember care homes & hospitals need food too👇 bbc.co.uk/news/business-…
Nando’s, McDonalds, Greggs, the list goes on. 🐓🍔🥟☕️
Bear in mind, these businesses are big, know their supply chains inside out & have money to throw at the problem. Yet they’re struggling.
More hidden are the 1000s of small businesses struggling to get supplies & deliveries.
Scottish food & drink orgs have just written to @pritipatel & @scotgov with specific requests for support to alleviate the workforce crisis
Q. The most important short term step?
A. Home Office shift on immigration. A 12-month temporary visa could make a big difference.
Immigration has brought enormous talent to our sector, from factory floor to boardroom.
But 1.3M overseas workers have left the UK in last 18 months & its now v. hard to return.
UK-wide, there may be as many as 500,000 jobs needing filled throughout the whole food supply chain.
We’re told everyone is “sick of experts” but it’s crucial Ministers now listen to those at the frontline of food production & supply.
The current strategy appears to be a mix of🤞and “it’ll be alright on the night”. Well it won’t be & we can’t ignore the warnings of worse to come
Industry must do its bit too & keep improving work culture.
🤝We need to embrace apprenticeships & keep engaging with local schools, colleges & unis.
🤝We should be ambassadors for principles of fair work
🤝it’s our job to raise attractiveness of sector (& tackle misconceptions)
I spoke to some of our biggest food firms last wk. They’re all paying above living wage & putting wages up further. Some are also:
👉working with parole officers to employ offenders
👉working with orgs to employ homeless
👉willing to provide jobs/training to Afghan refugees
The issue is not just about pay.
I spoke to a red meat business last wk. Their trainee butcher in the abattoir is paid more than a trainee accountant at one of the “Big 4” firms. And still they can’t get staff.
So complex problems deserve better than than glib soundbites…
I’ve worked in the agri-food industry for 20+ years. I’ve never known business owners as concerned as they are now about the impact of labour shortages on food supply.
They are at breaking point now and they know what is coming: Christmas
🎄🦃
Follow the data.
Chart 1 shows stocks in shops & warehouses at their lowest level since records began.
Chart 2 shows the enormous spike in food sales at the end of every year, as we head towards Christmas.
Without action on labour shortages, we are in serious trouble.
Long term too, there’s tough Qs to ask of our food system.
Our demand for everything, 24/7, at knock-down prices creates a fragile food chain, vulnerable to shocks.
MI5’s maxim is that society is only ever 4 meals from anarchy.
After the year we’ve had, let’s not test that, eh?
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14 organisations write to @trussliz with concerns on Australia deal, the process behind it & what it means for the future.
Tl;dr: we should be ambitious on trade. But rushed deals can harm business, communities & our global reputation
The letter has three key calls for action:
👉start engaging with industry & experts on FTAs (avoid repeat of Brexit). Scrutiny is important.
👉respond to Trade & Agri Commission report & implement recommendations
👉impact assessments matter, so do them on all FTAs.
‼️When it comes to future UK trade deals, there’s a central point of importance for our food and farming industry:
We value world class standards of animal welfare, environmental protection and food safety.
So do consumers.
We undermine them at our peril.
🚜🐏🐄🐟🍽
I know Twitter isn’t often a place for empathy & understanding, especially on Brexit🇪🇺🇬🇧
But a short 🧵 on why business & their staff need a bit just now.
For those saying to businesses like @LochfyneLangous below “You should have known what was coming!”, a few reflections...
When @BorisJohnson said on Xmas Eve “there will be no non-tariff barriers” it wasn’t a one-off error. It was a pattern over months & yrs of saying barriers wouldn’t exist when they would. Can we blame businesses if they’re now shocked at what they face?
Even on 1 Jan, the Secretary of State for Northern Ireland said there was no border in the Irish Sea. There were many trade experts who knew the reality & tried to warn us (thank you!), but denial of reality, big red buses and accusations of “Project Fear” got more airtime.
BREXIT; a 🧵 at the end of week 4.
Spoiler alert: it’s not good.
➡️It’s turns out that UKGovt saying things are getting better or that it’s “teething problems” doesn’t make it so.
➡️There is much more trouble ahead.
➡️The worrying parallels between Brexit and Covid responses.
Four reasons things will worsen: 1. freight volumes aren’t close to normal, they’ll rise.
In April (8 weeks): 2. the 1st real checks on EU imports start (bad news for food flow & haulage availability) 3. GB/NI grace periods end 4. more food products fall under new export rules
❗️Warning, we’ve been here before:
- Experts warn of trouble coming
- A short window to act
- UK Govt hopes it will all be OK, ignores evidence & warnings.
- Fails to act until too late.
For previous episodes, see end of the transition period (and Covid strategy)
The reality of Brexit so far for many.
As of tonight, consolidated food loads are still not being taken to the EU by the main logistics firms. This food supply chain is now complex, costly & had no time to test its new systems. The result: EU trade has ground to a halt for many.
Daily meetings/calls trying to work through Brexit blockages. Problems so far include:
➡️Companies & hauliers struggling with paperwork
➡️IT systems in UK & France going down
➡️Food loads stuck because official product codes can’t be found
All efforts going into solutions
➡️Another session tmrw led by @SeafoodFromScot@ScotDevInt with companies on specific problems
➡️@FSScot has good resource at hubs. Logistics firms putting more staff in too
➡️Ministerial dialogue at Scottish & UK level
However, a key UKGov ask👇
🚨BREXIT UPDATE, Sunday
More messages from food exporters who are finding the door to the EU is now shut. Haulage firms won’t take their loads; bureaucratic/IT systems failing.
A multi-billion pound trade system is being tested for the 1st time, in real time. And it’s going wrong
Brexit, week 1 was bad. Week 2 will be worse.
UK Govt’s dismissal of the request from us (& most main business orgs) for a grace period was a critical mistake. By this time next week, pressure to revisit that will be even greater. Emergency financial aid may also be necessary.
The crux of all this is sheer complexity & lack of prep time. For a product that has 24hrs to get to market, small delays at diff points are crippling. This is the “simplified” 18-step process for moving fish from Scotland to France. This, on top of 8-step process for importers