The Food and Drink Federation (FDF) has announced it has anticipated that food and drink companies “will experience supply chain disruptions” driven by the war in Ukraine.
The food federation has assured it has already started working with companies in the sector to assess the impact of sanctions imposed on Russia.
It has also recognised that businesses hold a moral obligation to abide by the measures taken by the government in response to Russia’s full-scale invasion.
READ MORE: Russia Ukraine conflict could see inflation hit 8.2% as food prices rise
According to the FDF, grain, sunflower oil and other manufacturing inputs such as packaging are likely to be affected.
The FDF added: “We will work through these as efficiently as possible, but – with manufacturers also exposed to further rises in energy prices – this could well add to current inflation.”
The news comes a week after Russia’s invasion into Ukraine, where Kyiv has endured heavy shelling and the strategic city of Kherson on the Black Sea has reportedly been captured by Russia.
Currently, wheat prices have risen by 40% this month hitting a 14-year high and oil prices have reached a nine-year high – as the war has triggered fears over supply.
The war in Ukraine has also contributed to global energy prices and is expected to see UK’s inflation rise from 5.5% to 8% in a matter of months.
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