By the fall, food prices may rise by about 5%-turkeys and blanket-wrapped pigs may be in short supply this Christmas-because shortages in delivery drivers, slaughterhouse employees and other workers will push up wages and other costs.
Industry insiders said that due to the difficulty in finding enough employees, the wages of truck drivers and other supply chain workers, including slaughterhouse workers, as well as vegetable and fruit pickers and packaging workers, are rising.
“This is a war between workers,” said Ian Wright, CEO of the Food and Beverage Federation, which represents hundreds of companies in the food supply chain. “The only way to get more HGV and logistics drivers is to pay wages.”
Although this is good news for relatively low-income workers, Wright said it will cause food prices to rise by about 5%. He warned: “In the second half of this year, food prices will rise in the mid-single digits, which will cause customer prices to rise.”
Tony Goodger of the Association of Independent Meat Suppliers (Aims) said the meat processing industry’s problems meant that the company paid at least 10% to its employees before the pandemic. “These costs have been passed on,” he said.
Bureaucracy caused by Brexit Gudger said the industry has also been hit, especially due to the competitive needs of exporters, and the shortage of veterinarians in processing facilities. They now need qualified veterinarians to approve health certificates. Drivers with the correct certification for transporting animals and slaughterhouse workers with slaughter skills are also difficult to find.
It is estimated that the meat processing industry lacks about one-fifth of the necessary workers, and some factories have only half of the regular employees working at this time of the year.
These problems have exacerbated the problems in the soft fruit industry, which needs at least 70,000 seasonal workers each summer, and said there will be a shortage of about 5,000 picking workers this year. Food transportation is also affected by a shortage of tens of thousands of heavy truck drivers.
Driver shortage is also related to Brexit Tax changes This affects wages, and employers in the food industry say the vacation plan gives workers the opportunity to re-accept jobs with longer social hours.
Goodger says that meat processors focus their workers on products that are needed immediately, which means that the processing of blankets and pigs in stuffing, which are usually prepared and then frozen in the summer, is unlikely to be a priority.
He said: “These Christmas product lines are unlikely to be produced, so we probably won’t have them before December.” Goodger added that unless the government expands the seasonal worker program to butchers, it usually comes from mid-October. EU workers who have been in the UK to process turkey for about two months will not be able to do so.
The difficulties caused BrexitSeasonal and even long-term workers have been prevented from returning from the EU, and the impact of the pandemic has squeezed the available labor force.
Just like in the healthcare field, Hospitality People have to self-quarantine after coming into contact with people infected with the Covid virus or being tested by NHS testing and tracking apps, thereby exacerbating the shortage of retail and food workers.
The change in government restrictions, namely the implementation of a lockdown and then release in a short period of time, has also increased the need for rapid transfer of products to meet changing needs.
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Government officials have Hold an emergency meeting Cooperate with retailers, wholesalers and logistics groups to resolve the shortage of drivers and other workers.Retailers and suppliers have Warn about food and drink shortages But by shifting to alternative brands or Reduce the number of options In sales, resources are concentrated on the production and distribution of best-selling products.
According to Kantar analysts, in the three months ended June 13th, grocery prices fell by 1.9% compared to the same period last year as supermarkets compete to keep shoppers back to eat out and buy sandwiches anytime, anywhere .
Retailers are also concerned about increased food waste due to transportation difficulties Tesco boss warning Vacancies generate 48 tons of food waste every week, which is equivalent to the load of two trucks.
