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Industry heading for "real issues" with raw material shortage

Despite Brexit uncertainty, food and beverage producers need to manage risks and strategically plan to guarantee productions levels now, claims a market expert from Dawsongroup Temperature Control Solutions (DGTCS).

Michael Sansum, project development manager at DGTCS, said: “The majority of my conversations with food and drink clients over the last few weeks have been about how they should react to Brexit uncertainty. My position is that there is still a need to mitigate risks, plan appropriately, and guarantee production now, whatever happens after 29 March.

“Despite there being a healthy supply of pallet spaces currently available in the UK and in European ports for long term or ‘finished product’ storage, I believe there is going to be a real issue with raw material supply, commodity imports, and ‘short life’ product storage” if producers don’t take action.”  

Whilst food producers continue to focus on expected issues around the supply of chilled and frozen raw materials, there is little consideration around raw material storage. Without the correct storage in place, there is likely to be serious production issues, and ultimately, the industry could fail.

Sansum added: “In the last few weeks before Brexit, I’m starting to hear producers discuss plans for projects that will be on-going after 29 March. Despite continued economic uncertainty, many more manufacturers should be considering how they can increase orders to ensure a good supply and improve their buying power with the correct temperature controlled facilities on site to provide ample storage or even allow production.

“Partnering with the correct provider is key; a company that can provide short term storage for fresh ingredients and the ability to offer solutions that can freeze or up-temper fresh produce in time for production. This type of investment means raw materials are ready at the right temperature, 24/7; this is highly valuable whatever the post-Brexit landscape, as well as removing additional distribution costs and any third-party handling costs.”

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