UK shortage crisis: a domino effect in the supply chain

UK shortage crisis: a domino effect in the supply chain

As the UK emerges from the impacts of the COVID-19 pandemic, hoping to build a resilient recovery, the UK instead finds itself faced with an onslaught of shortages, plunging the country into a supply chain crisis.

The warning signs were already there when March 2020 brought a nationwide lockdown, leading to disruptions in food processing industries, pushing the UK’s food security to the forefront of conversation. The rules on social distancing, labour shortages due to sickness, lockdown measures to contain the spread of the virus, in addition to a frenzy of panic buyers, briefly emptied supermarket shelves. 

The UK’s supply chain is both delicate and complicated. There are many different stages of operation which must run smoothly with little interruption. Otherwise, the system can behave like a set of dominoes - if one goes down it can offset a rippling effect down the chain. Nineteen months down the line since the first lockdown and the UK’s food security is still at the forefront of conversation. Now shelves are scarce once again, not just as a consequence of COVID-19, but due to a combination of complex disruptions. 

Labour shortages

It can be argued that the low supply of labour offset the domino effect of the recent shortage crisis. The effects of COVID-19 on the UK’s labour force was undoubtedly made worse by Brexit. With the dual-impact of the pandemic and leaving the EU, the UK saw the largest withdrawal of EU workers from the UK labour force between October and December 2020. British farms are also suffering due to the lack of labour. The latest National Farmers Union End of Season Survey (2020) shows that although our reliance on UK workers has increased to 9%, this is still a small share of the overall workforce. The results estimate that 68% of the labour force are in fact members of the European Union, highlighting the UK’s heavy reliance on skilled migrant workers. 

Lack of labour has also caused an increase of waste during food production. One of the UK’s biggest vegetable producers, Alfred G Pearce Ltd, says it’s losing thousands of pounds a week, having to throw away food as the labour force in that area is 20% to 30% down on previous years. A second company, Freshlands Farm, has lost tens of thousands of pumpkins as it has not been able to hire any workers to clear weeds from the fields. 

With the labour force slowly drying up, farmers are left to look for new ways to reduce their reliance on people. Fortunately, recent advances in technological innovations can offer a possible solution to the current challenges. Halvard Grimstad, agricultural engineer of Saga Robotics, states that there is interest in autonomous robots from farmers as it reduces labour needs. It is estimated that around 20% of a picker’s time is spent carrying crates, but with the aid of automated technology, such time pressures can be alleviated. The use of automation and robotics, working in conjunction with conventional agriculture, could greatly benefit the industry - allowing small and large farms alike to become more productive, efficient and cost-effective than ever before.

Food shortages

There are no food shortages as such, but rather supply issues in haulage and logistics. The food sector has been struggling to cope with the loss of workers. Because of the ‘just in time’ nature of our food system, there are barely 12 hours of stock at any level of the food supply chain at any time. As a consequence, food shortages can occur quickly due to the simplest traffic disruptions, let alone due to major issues in labour supply. Adding to the stress, the Road Haulage Association says there is a current shortfall of around 100,000 heavy goods vehicle (HGV) drivers in the UK, meaning there are insufficient methods of transporting the food to retailers.

Over half of UK shoppers have experienced food shortages in their local retail providers over the past few weeks, a YouGov survey has revealed, with the possibility of becoming permanent if things don’t change. The labour shortage has highlighted how dependent Britain has been on overseas workers, so it is clear that we must find ways to diversify and simplify supply chains. 

How indoor farming could help

Controlled Environment Agriculture (CEA), such as indoor farming, has the potential to increase and stabilise the amount of food being produced in the UK. It could also provide a steadier supply of work for farm labourers, rather than relying solely on seasonal opportunities. The flexibility of indoor farms means they can be deployed anywhere with an electricity and water supply. They can also make use of derelict spaces, particularly in cities. If cities can begin to feed themselves, this will help to build resilience into the food supply chain and cushion it from the rippling effects of shocks in the global supply chain. 

In addition, our reliance on imported foods has also affected the availability and pricing of some products. Shoppers can expect to pay more for their pasta in coming months amid shortages of its key ingredient, durum. A scramble for durum wheat has pushed the price up nearly 90% this summer after drought and soaring temperatures hit the farms in Canada, one of it’s biggest producers, affecting crop production. As a result of the poor harvest, prices of wheat have shot up by 90-100%, with UK shoppers facing paying 50% more for the product in the future. Again, CEA can play a part in addressing these types of issues. For example, indoor farms are climate proof; crops cannot be affected by the status of the weather as they are grown indoors with the optimum conditions for the specific crop, all year round. 

Ultimately, the labour shortages across the UK food and farming sector have shone a light on the vulnerability of our food supply chains. Members of our food industry need to work together through this crisis to deliver a more sustainable food model that is fit to feed the population's demands. Failing to make these changes will likely mean these food shortages will be increasingly part of our lives. At LettUs Grow we believe technological advances in the farming industry can build resilience into the food supply chain and support conventional farming methods.

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