Since the pandemic, food manufacturers are facing new challenges. As we run into full harvest season, fruit availability and pricing are additional challenges that they are facing. Our collaborative networks prove to be a concrete solution when it comes to securing fruit supply.
Food Security at Risk
In its April edition of the Commodity Markets Outlook report, the World Bank states:
“Disruption of supply chains has already affected the export sector of (Emerging Markets & Developing Economies), especially for perishable products such as flowers, fruits, and vegetables . . . Shipments to Western European markets, including the United Kingdom, the Netherlands, and Germany, fell from 60 to 15 tons per day.”
One major root cause resides in labour scarcity. Farmers in Spain, Greece, Canada, US, Italy, France and India have already reported lacking the necessary harvesting manpower resulting in a global shortage of fruit supply and a rise in price. Spain alone depends on 300,000 seasonal workers.
Supply Chain Pivots to Secure Business Continuity
Unforeseen cost increases are creating financial pressure which threatens business continuity for food manufacturers around the world. According to Pwc’s recent outlook on the current situation for the manufacturing industry (click here), over 80% of National Association of Manufacturers (NAM-USA) members anticipate a significant financial impact on their business due to Covid-19.
To secure business continuity and maximize liquidity, manufacturers will need to revisit their supply chain in an effort to anticipate the risk on their operations. Pwc advises to start “[Preparing] for supply chain pivots that could require identifying alternative suppliers”
Collaborative Networks at Work
We at INNODELICE strongly believe global problems require innovative approaches.
Through our global food network, we bring fast and concrete solutions to food manufacturers, brand owners & importers so that each can gain a competitive advantage on their respective markets. In the face of this year’s global fruit supply shortage, we were driven to be part of the solution.
With strategic partnerships and transparent collaboration, we have improved purchasing costs for our partners by 10-15% for the same fruit specification. Having direct access to their fruit sourcing and improved prices results in our partners being more confident in their business continuity.
Start rethinking your fruit sourcing with INNODELICE!