Some products that we consume regularly may run out in the coming days. The Belgian Food Industry Federation says it is quite worried. Due to the war in Ukraine, many raw materials are no longer available. Companies must reorganize their production.
Like other factories, a Courcelles company that produces pizzas is currently facing difficulties in the supply of sunflower oil, mainly imported from Russia and Ukraine. Alternatives must therefore be found.
“For example, rapeseed or palm oils do not necessarily have good press. It is very complicated because we must not only protect the consumer from major changes, differences in labeling but also protect the consumer end of a fairly significant price increase”explains Grégory Doumont, the quality manager.
Protect the consumer
Searching for other solutions takes time and adds a workload to employees. “On the staff, the impact is quite significant because we have to research new raw materials or alternatives, so it keeps our teams busy”adds Grégory Doumont.
Supply problems are not limited to food products. In a brasserie in Rebecq, certain types of glass bottles are missing. “I have some of my bottles that come, either from Russia or from Ukraine. So there in Ukraine, I don’t have any bottles at the moment and in Russia, the maritime transport is closed, so it is transport land with surcharges and no security of supply”underlines Paul Lefebvre, the owner of a brewery.
This situation drives up prices. Since the start of the war in Ukraine, the bottles have cost him 30% more. In the event of a shortage, he could opt for aluminum cans in the future.
These supply problems concern 4 out of 10 companies because of certain shortages and the increase in production costs, explains Bart Buysse, the administrator of Fevia, the Federation of the food industry in Belgium.
Businesses need to reorganize. Could some have to stop production?
This is already the case for 9% of companies that have to reduce or stop production. Others anticipate having to do so in the next two to four weeks.
For which foods and which products is this a problem?
It depends on which raw material the company works with: for example sunflower oil, wheat, mustard creams, honey or glass packaging.
For these products, should the consumer fear shortages?
We are not immediately afraid of shortages, fortunately the department stores have a certain stock but insofar as we are forced to reduce production in certain companies, this could result in a short time in a lack of certain products on the shelves. On the other hand, the consumer can expect price increases.
What do you expect from the authorities or the retail sector?
We expect pragmatism and flexibility from the authorities, particularly with regard to the application of labeling legislation to allow our companies to work with alternative raw materials, for example, and also to be able to reduce the energy bill for our companies.
On the part of large distribution, flexibility is expected to take into account the additional charges, the cost increases that our companies are facing and not to impose logistical sanctions, in the event that there is a certain stoppage or some delay in deliveries.