‘Disruptions’ expected as UK imposes sanctions on Russia, warns FDF

Food and drink companies “will experience supply chain disruptions” driven by the war in Ukraine which in turn will add to current inflation, warned Food and Drink Federation (FDF) on Wednesday (2).

FDF’s Chief Executive Karen Betts said that supply of commodities like “grain and sunflower oil, as well as other inputs, including packaging” could be affected.

“We’re urgently working with companies in our sector to understand the impact of the sanctions imposed on Russia. Businesses want to do the right thing in ensuring they abide by the measures taken by governments in response to Russian aggression. 

“We anticipate that some food and drink companies will experience supply chain disruption as a result of the war in Ukraine, given that commodities, such as grain and sunflower oil, as well as other inputs, including packaging, could be affected. We will work through these as efficiently as possible, but – with manufacturers also exposed to further rises in energy prices – this could well add to current inflation,” Betts said.

This is FDF’s second warning in a week. Earlier on Feb 24, Betts said that disruption to Ukraine’s exports will have an impact on global food supplies and on the price of a range of key commodities, such as vegetable oils and maize, which are important in UK food production.

Currently, wheat prices have reportedly risen by 40 percent this month, hitting a 14-year high and oil prices have reached a nine-year high – as the war has triggered fears over supply. 

The war in Ukraine has also contributed to global energy prices and is expected to see UK’s inflation rise from 5.5 percent to 8 percent in a matter of months.