Ukraine effect could offset food and drink export boom
28 May 2022
Food and drink statistics for March suggest the sector enjoyed its strongest export levels since October 2020, suggest tax consultants RSM.
But Stuart McCallum, head of food and drink at the firm formerly known in the UK as Baker Tilly, warned the delayed effects of the Russia-Ukraine conflict will see severe new supply chain issues caused by the ongoing geopolitical disruption and rising inflation.
“ We can expect this to materialise in export figures for, with manufacturers now facing a wave of severe new supply chain issues caused by the ongoing geopolitical disruption and rising inflation,” stated McCallum.
In addition, the rising cost of living and the challenge of importing products such as wheat and oil, required added focus on food waste and consumption.
Hde added: “Sourcing local produce and eating seasonally to reduce the UK’s reliance on imports is more important than ever, to avoid increased consumer prices and even business closures.”
Yet the Office for National Statistics' trade data for March had showed “manufacturers are successfully managing to navigate new markets post-Brexit and pandemic” with exports of £2.3 billion at the strongest level since October 2020, with exports,” said McCallum.
This followed a substantial rise in exports to the EU at the start of 2022, after a 12-month downward trend in the previous year, suggesting supply chain disruption had stabilised as demand for UK produce heightened.
