The report, Appetite for Change: Building More Resilient Food and Drink Supply Chains in an Uncertain World, draws on perspectives from food, logistics, sustainability and supply chain individuals including representatives from The Cold Chain Federation, Planet Farms, Lincoln Institute for Agri-Food Technology, Sheffield Hallam University’s Advanced Food Innovation Centre, Cranfield School of Management, EcoVadis, the UK Warehousing Association, CHEP UK & Ireland, Flow Skills Online, the Provision Trade Federation and Palletways UK.
It warned that climate disruption, energy volatility, geopolitical instability, water scarcity, cyber-attacks and animal disease outbreaks could combine to place “severe pressure” on food production and distribution.
The report also highlighted the “continuing fragility” of the logistics workforce, with too few new recruits entering the sector. As food products must continue to be collected, transported and delivered regardless of disruption, developing a sustainable workforce is identified by the report as a “critical resilience priority”.
With the UK importing around 40% of its food, the report said that global events can quickly affect sourcing, availability and pricing. As businesses navigate more complex supplier networks, it said that being supported by stronger data, traceability and supplier relationships will be “critical” to making faster and more informed decisions.
While stating that digitalisation created new opportunities to improve resilience, Linde Material Handling also pointed out that a greater reliance on digital systems introduced new challenges, including cyber risk and bottlenecks.
The cold chain was spotlighted as the report warned of disruption to temperature-controlled storage, transport or distribution.
Resilience to be “designed into” supply chain
Ben Griffiths, sales director (business development) for Linde Material Handling, said: “The food industry’s success in overcoming previous disruption should not create a false sense of security. The next crisis may involve several pressures arriving at once, affecting production, storage, transport and workforce availability.
“Resilience must therefore be designed into the entire supply chain. That means stronger contingency planning, more adaptable logistics, greater visibility, robust cyber protection and investment in the people, infrastructure and technology needed to keep essential products moving.”
In the report, Rod Addy, director general of the Provision Trade Federation (PTF), commented: “The food industry’s success in maintaining supplies during the Covid pandemic may have created a dangerous impression that, whatever disruption comes its way, the sector will always be able to cope.
“Industry and Government worked closely together, and although there were some shortages, the food supply chain continued to operate. However, that experience should not become a reason for complacency.
“The concern is not simply one individual risk, but the possibility of several events occurring simultaneously. Climate disruption, energy volatility and geopolitical instability are already affecting the sector. A major cyber-attack or an animal disease outbreak, such as African swine fever or foot and mouth disease, could place additional pressure on a system that is already managing multiple challenges.”
Maddy Coupe, policy manager at the Cold Chain Federation, stated: “Building more resilient and adaptable supply chains requires greater recognition of the cold chain as critical infrastructure. Government must support investment in modern infrastructure, energy resilience and cyber security, while improving planning frameworks and establishing early-warning systems and emergency response mechanisms that enable food supply chains to continue operating during periods of disruption and national crisis.”
