A kg of tomatoes wholesale now costs £1.47, up from 75p a year ago
Labour shortages affecting a range of industries in the UK could last for up to two years, according to the Confederation of British Industry (CBI).
The CBI’s members, some of the biggest employers in the UK, have said the government’s job retention scheme would do little to help in September, and that with the need to train staff, the issue is likely to remain unresolved in the short-term.
Officials in the UK have told companies that they should employ British workers, including those who are coming off furlough, and not to expect a temporary rule change to allow EU workers who have previously taken up these roles.
CBI boss Tony Danker says the UK needs to deal with its short-term economic needs as well as making reforms for the longer-term.
The CBI put the shortages down to both Brexit and Covid-19, which had limited the numbers of EU workers.
More specifically, the food industry has warned against the possibility of price rises as they need to raise the wages of workers, in addition to surging transportation costs.
The price of tomatoes has doubled in the past year, while the cost of vegetable oil is at its highest point in 30 years.
Darren Labbett, the managing director of Woods Foodservice, a wholesaler that supplies the pub and restaurant trade, said the industry is facing a “perfect storm” of negative effects.
“We are trying our utmost to absorb as much of the increases as possible but we, as well as the rest of the supply chain, can’t absorb those price increases forever,” Labbett told BBC Radio 4’s Today programme.
“We are also taking other actions, and that’s by ordering in more stock in advance and carrying more stock than we would normally carry. We have doubled the lead time to ensure if there are any delays due to a shortage of lorry drivers that it doesn’t impact on the availability to our customers.”
However, stocking up on fresh produce is easier said than done due to its short shelf life.
