November 2020 Brexit Outlook
Will Turner, Director, IPA Purchasing Ltd
Grocery
With 2 months to go until the transition period ends the picture of the products to be affected is becoming marginally clearer. IPA receives constant updates from suppliers across a wide range of sectors and continues to believe that while there could be a cost implication, it is very unlikely that products will be unavailable.
As they have stated on Channel 4 News, IPA’s main grocery supplier Bidfood, have invested in additional warehousing facilities to hold additional stock of those products that could be in short supply due to their origin or ingredient origin. We are aware that it is not just Bidfood who have taken these measures, and the market appears (on the face of it) well prepared. To offer additional reassurance, IPA has relationships with alternative suppliers including Brakes (a SYSCO company) that offers a direct alternative to the service and products available from Bidfood. We have had strong communication with Brakes that suggests within a period of 72 hours accounts could be open for all sites and trade begin for all products or for some that Bidfood cannot access.
Fresh
It is highly likely that supply and demand will dictate that the price of British produce will rise. In order to reduce risk many companies will be ensuring their percentage of British produce increases to protect their supply chain, as there is less risk in availability.
Fruit & Veg
It is becoming apparent that fresh fruit and veg poses the highest risk to non-supply on a couple of lines. Some exotic products come straight into the UK from South America, Africa and the Far East in the case of Garlic and Ginger. These lines are likely to be unaffected as they are not transiting through the ‘affected’ area – Europe. There remains a small risk as the container ports reach capacity of some delay.
The core British lines (At the time of the transition) of cabbage, potatoes and other greens are also ‘safe’ from any availability issues. Therefore; it is those products that are either grown in the key European growing regions of Southern Spain and Holland or those that transit through the large international markets such as Runges in France, and then enter the UK via road freight at one of the UK Ports that are at risk of none supply. Those products are likely to be mainly salad items such as Cucumbers, Tomatoes, Peppers and Lettuces. There will be some fruit coming from Southern Spain such as Grapes and occasionally Italian apples.
The caveat to any concerns of non-supply is that most of our suppliers purchase from multiple sources within the UK including New Covent Garden Market, one of the biggest Fresh Produce Markets in the world. The Market will continue to offer multiple varieties of product, from a wide range of traders and importers, giving maximum choice. In Addition to New Covent Garden, suppliers will be procuring from Dover, Southampton, and Bristol to ensure supply. If not already, we are suggesting all customers move to a policy of Order Day 1 for Delivery Day 3, to ensure our suppliers know our requirements in advance. It is suggested that this is reminded to all chefs, so suppliers continue to have the maximum period to source sufficient product.
Dairy
The majority if now all milk and cream is processed in the UK from UK farms it is unaffected from an availability view but pricing is extremely volatile with farmers looking to recover costs rapidly.
Butchery
Our butchery partners have the option of freezing down meat if required, however at this time many do not believe in the need and are committed to continue to offer a fresh product throughout the transition.
SUMMARY
Focusing our chefs on cost control becomes more important as cost increases are inevitable for some supply areas. By working with IPA we are already protecting a large proportion of your supply chain from Brexit related issues by ensuring there are back up suppliers in place and where relevant carrying risk analysis on the products purchased.