More than 500,000 vacancies across food and drink sector impacting supplies: IGD

There are more than 500,000 vacancies across food and drink businesses which are impacting availability of fresh produce and protein to the shoppers, says a special report  by Institute of Grocery Distribution (IGD) released earlier this week.

According to  IGD’s “Viewpoint Special Edition: Focus on Labour Shortages”,  shortage of labour in UK due to Brexit goes beyond transport as businesses across the supply chain have reported problems severe enough to affect operations. In some cases, the range of goods being produced has been reduced and some suppliers have been unable to supply customers in wholesale, retail and foodservice. Some outlets have been forced to close (eg: Nandos), says the IGD report.

The report also points out how retail prices for food and consumer goods have risen over the last decade, but have not kept pace with general inflation. Intense and sustained price competition is a reason for this, with major supermarkets aligning their offerings closely to discount rivals. However, a decade of static or falling prices has now created “consequences in the supply chain”, says the IGD report.

Additionally, work in food and consumer goods is not seen as particularly desirable, especially in entry-level roles since it is physically demanding and uncomfortable.

IGD report also states that recruitment of new EU workers to the UK began to slow down from 2016 onwards and EU Exit has not made the UK more attractive for overseas nationals. 

In case of HGV drivers shortage, IGD points out many reasons, primarily: 

• Training and qualification disrupted by COVID-19 New tax regulations (IR35), 
• Ageing workforce – with more drivers retiring and an undeveloped pipeline of new entrants
• Challenging working conditions (eg: high stress, long periods away from home) 
• Non participation – many people qualified to work as HGV drivers do not do so
• Demand for drivers from non-food employers, especially couriers Difficulty obtaining insurance for younger drivers

IGD report adds that labour planning and automation can be long term remedies to tackle labour shortages in the country. While some parts of the food industry saw rapid automation in recent years, other parts have seen less investment, either because roles are hard to automate (eg: fruit picking, restaurant kitchens) or labour has been in plentiful supply.

Improving pay and work conditions across the food industry is another short term remedy, says IGD, adding that the government should consider adding HGV drivers and other critical functions to the ‘shortage occupation’ list and expanding the scope of temporary worker visas.

IGD’s Viewpoint Special Edition: Focus on Labour Shortages is available at igd.com.