I agree with Peter Vanden Houte at ING who recently said, “it looks as if the war in Ukraine and the sanctions against Russia will worsen supply chain problems with an additional negative impact on growth.” Ukraine has been the worst hit from a production standpoint and operational restrictions mean that food will continue to go to waste.
Further, Russia is a significant exporter of potash which is actively used for fertiliser. This has led to a global crisis that is, in part, responsible for rising costs in food production. With restrictions remaining, the necessity for a diverse network could not be clearer.
Relying on a single supplier for essentials like natural gas and minerals highlights the issue of being overly dependent on single players.
In relation to the fresh produce supply chain, we have seen year after year that there is a heavy dependence on fixed trade relations and an unwillingness to pivot to new networks. This is combined with a lack of networking opportunities for many players, big and small, in the fresh produce supply chain.