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Sep 04, 2021
12:55 AM
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Food price rise fears amid staff shortages
The national shortage of lorry drivers could lead to a rise in food prices, wholesalers have warned.
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Darren Labbett, managing director of Woods Foodservice, told the BBC that his industry was facing a "perfect storm" of adverse effects.
"We've got the Brexit situation and the after-effects of the pandemic coming together at the same time," he added.
Mr Labbett said the cost of vegetable oil was at a 30-year high because of higher shipping costs and demand.
"As we came out of lockdown, the demand for everything went through the roof overnight," he said.
Mr Labbett added that wholesalers were "trying our utmost" to absorb the extra costs instead of passing them on, "but we can't absorb those price increases forever".
James Bielby, chief executive of the Federation of Wholesale Distributors, which represents about 600 firms in the wholesale sector, said there were "chronic" staff shortages throughout the food and drink supply chain, with up to half a million vacancies.
"That means all businesses - growers, processers, wholesalers and manufacturers - having to offer incentives to retain and recruit staff, and costs are rising as a result," he told the BBC.
"Under these circumstances, it is inevitable that some of these cost increases will be passed through the supply chain, which will lead to food price inflation."
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