Food and drink manufacturers have around £3billion of business backing up due to blockages in the supply chain, according to a new report from Barclays Corporate Banking.

The Chain Reaction report said that a third of food manufacturers were struggling with materials availability, as the Ukraine war continues to limit supply of critical ingredients such as wheat and sunflower oil.

Lee Collinson, managing director, UK head of manufacturing, transport and logistics, Barclays Corporate Banking said: “Our research reveals the sheer number of solutions being used by businesses to reconfigure supply chains in ways that enable them to survive and thrive.”

One of the examples, Barclays highlights is Jacksons Bakery, which supplies most of the UK’s major sandwich makers and foodservice companies from its base in Hull.

Managing director, Ower Elliott told Barclays: “While we don’t source flour from that region, the impact of the war saw prices rise seismically. ‘Grain corridors’ did eventually open, but insurance remained a key factor for vessels entering the region.”

Barclays also reported that despite the intense challenges, Jacksons remained committed to becoming a more sustainable business. It has recently appointed a dedicated sustainability manger.  It is also committed to its group’s targets (William Jackson Group), which include halving food waste and achieving 100% traceability of directly-controlled ingredients by 2030.

This extends to its supply chain too. “We are now using Authenticate as a software partner to help us get full visibility across our supply chains. We are using the tool to assess risks of supply – not only for technical issues, but also ethical and environmental aspects,” said Elliott.

“We are starting to adopt the philosophy of using Mother Nature as a stakeholder in all our business decisions, including material sourcing, product development and capital decisions.”

The Barclays Chain Reaction report can be found in full here.