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'A real challenge': Britain's biggest dairy supplier 'regularly' can't deliver to some shops
The boss of the UK's biggest dairy supplier has revealed it is facing inflation pressures from higher energy, packaging and labour costs.
Ash Amirahmadi, managing director of Arla Foods, also spoke about the concern caused by driver shortages which mean the company is unable to deliver milk to hundreds of shops every day - an issue the company has warned about since the summer.
Mr Amirahmadi was speaking at Sky's Big Ideas Live event, in which business leaders have been discussing a range of topics on the UK economy - from the post-pandemic recovery to the green energy transition.
His comments on higher costs facing the business come after recent figures from the Office for National Statistics showing how firms were increasingly passing these on to customers through higher prices.
Meanwhile, supermarket industry data on Tuesday revealed rising grocery prices, adding to pressure on household finances at a time when inflation - already at a nine-year high - is forecast to climb further.
Farmer-owned Arla supplies butter, spreads and cheese, as well as milk, to shops - but like other industries has been hampered by a nationwide shortage of lorry drivers that has been estimated at 100,000.
Mr Amirahmadi said: "Just simply being able to get the product from our factories to supermarkets is a real challenge.
"We are very mechanised when it comes to our production of milk and dairy products in factories, but we need drivers to take that to the shops."
He continued: "On average we're delivering to about 2,300 shops a day, and we're regularly not able to deliver to about 10% of our shops. That gives you an idea of the type of shortage we're dealing with.
"Everyday items - when the shops don't have milk, that tends to cause concern."
He added that the surge in energy prices had affected "all aspects" of the business.
"Energy is clearly one of the key cost drivers, but labour is another one," he said. "We're a food company, so packaging rises as well.
"So inflation would be one of the key issues that we're navigating as a business."
https://archive.is/HNQQ6
Unions threaten MORE Christmas chaos: Unite seize on plans to relax rules for foreign HGV drivers to threaten more strike action - days after warning of walkout over pay
Union chiefs are said to be preparing strike action for British HGV drivers after ministers backed plans to make it more attractive for foreign hauliers to work in the UK.
British businesses are said to be 'appalled' by Government-backed plans to allow overseas drivers make 'unlimited journeys at low rates' to combat shortages and save Christmas.
They say the move risks British labour being 'undercut' by cheaper foreign companies as national union Unite prepares to discuss potential strike action with hauliers, reports The Times.
In desperate efforts to plug the gaps amid a national driver shortage, the government have agreed to a relaxation in 'cabotage' rules - which currently limit EU-based companies to making a maximum of two trips in the UK within a week.
But Rod McKenzie, managing director at the Road Haulage Association, warned ministers would be allowing firms from abroad 'do unlimited work at low rates, undercutting UK hauliers who are facing an acute driver shortage, rising costs and staff wages'.
Sharon Graham, Unite's new leader whose trade body was accused of 'holding Christmas hostage', added that the treatment of British drivers was 'nothing short of a disgrace'.
The news comes just days after thousands of supermarket and delivery drivers were to be consulted over a mass walkout - the largest strike threat of its kind since the notorious Winter of Discontent more than 40 years ago.
The recent supply chain crisis, which many fear will continue to cause empty shelves into the festive season, has given truckers 'power', the union said.
As a result, their representatives are demanding commitments from ministers to provide clean toilets and catering facilities at truck stops as well as a pay rise for veteran drivers, after new starters were offered salaries of £50,000 to get behind the wheel.
Mr McKenzie told BBC R4's Today programme that any agreement to allow foreign firms unlimited access across the UK could 'sabotage' British businesses.
He said: 'I spoke to some of our members last night and they were appalled, ridiculous, pathetic, gobsmacked.
'This is about taking work from British operators and drivers and giving it to Europeans who don’t pay tax here and pay peanuts to their drivers.
'The government has been talking about a high wage, high skill economy and not pulling the level marked uncontrolled immigration and to them this is exactly what it looks like.'
This week, families were warned to start shopping for Christmas now amid fears that supplies of toys, electrical goods and other products will be disrupted by the logjams at UK ports.
Retail leaders say the shortage of HGV drivers to carry loads from docks around the coast is threatening festivities and the wider economy.
Meanwhile, unions are said to be discussing the potential for industrial action. The government has played down the impact of any strike.
Sharon Graham said: 'Britain's drivers kept the nation moving during the worst crisis in living memory. It's time for employers to pay workers a proper rate for the job.
'Enough is enough. Unite will be consulting its members before deciding on the next steps, including exploring the options for industrial action.'
But Transport Secretary Grant Shapps downplayed any threat of strike action looming over the winter period, as MailOnline understands Unite's representation in the haulier industry sits at around 15 per cent of all drivers.
He told the BBC: 'We're not in the 70s where there was a big unionised block of lorry drivers.'
It comes after comments from the head of the British Port Association explained a lack of HGV drivers had caused deliveries to slow down at Britain's busiest ports.
Richard Ballantyne, chief executive of the British Port Association said haulier shortages had meant goods were 'sitting around longer than you expect' in Britain's ports.
He added: 'The lack of haulage isn't stopping ports from doing things, it's just slowing things down at the moment.
'It's a big problem across the board, not just in the container sector as we've seen this week but also the roll-on roll-off - where trailers are dropped at ports and collected by domestic drivers.
'We're now also seeing a bit of an impact in the bulk sector. It's not a major problem at the moment, but it could be, so we're supporting some of the moves government are making to make it easier for people to come in an drive.'
Mr Ballantyne also appeared to back the Government's drive to loosen cabotage restrictions, describing it as 'quite a helpful move'.
He added: 'I know some domestic hauliers in UK are nervous about this, but in terms of having overall resource in Britain, we do like that. Coupled with other factors, immigration visas and the relaxation of driver's hours.
'But it's important to say these are not long term solutions, government and industry need to look at ways to attract new and young people into the sector.'
One in three retailers in Britain are expecting prices to increase over the next three months amid cost pressures from rising transport costs, higher energy prices and ongoing labour shortages.
The British Retail Consortium said there are 'clear signs' the combination of issues are 'starting to filter through to consumer prices', and small retailers across the UK say they are expecting to have to charge more.
But others said they are 'desperately holding off from being a Christmas grinch and keeping everything the same' because they don't want to give shoppers more reasons not to buy in what is already a tough market.
https://archive.is/sHQTd
Prices have been increasing already.
See also -
Is this communism by the backdoor? - Shortage of beef
https://ancient-forums.com/viewtopic.php?p=162287#p162287
There are also more energy companies which are going bust.
Renewable alternative energy - amazing home-made gasifier uses wood pellets to run generator
https://www.bitchute.com/video/0HDy6HE2cJwx
- 'A real challenge': Britain's biggest dairy supplier 'regularly' can't deliver to some shops
- Unions threaten MORE Christmas chaos: Unite seize on plans to relax rules for foreign HGV drivers to threaten more strike action - days after warning of walkout over pay
'A real challenge': Britain's biggest dairy supplier 'regularly' can't deliver to some shops
The boss of the UK's biggest dairy supplier has revealed it is facing inflation pressures from higher energy, packaging and labour costs.
Ash Amirahmadi, managing director of Arla Foods, also spoke about the concern caused by driver shortages which mean the company is unable to deliver milk to hundreds of shops every day - an issue the company has warned about since the summer.
Mr Amirahmadi was speaking at Sky's Big Ideas Live event, in which business leaders have been discussing a range of topics on the UK economy - from the post-pandemic recovery to the green energy transition.
His comments on higher costs facing the business come after recent figures from the Office for National Statistics showing how firms were increasingly passing these on to customers through higher prices.
Meanwhile, supermarket industry data on Tuesday revealed rising grocery prices, adding to pressure on household finances at a time when inflation - already at a nine-year high - is forecast to climb further.
Farmer-owned Arla supplies butter, spreads and cheese, as well as milk, to shops - but like other industries has been hampered by a nationwide shortage of lorry drivers that has been estimated at 100,000.
Mr Amirahmadi said: "Just simply being able to get the product from our factories to supermarkets is a real challenge.
"We are very mechanised when it comes to our production of milk and dairy products in factories, but we need drivers to take that to the shops."
He continued: "On average we're delivering to about 2,300 shops a day, and we're regularly not able to deliver to about 10% of our shops. That gives you an idea of the type of shortage we're dealing with.
"Everyday items - when the shops don't have milk, that tends to cause concern."
He added that the surge in energy prices had affected "all aspects" of the business.
"Energy is clearly one of the key cost drivers, but labour is another one," he said. "We're a food company, so packaging rises as well.
"So inflation would be one of the key issues that we're navigating as a business."
https://archive.is/HNQQ6
Unions threaten MORE Christmas chaos: Unite seize on plans to relax rules for foreign HGV drivers to threaten more strike action - days after warning of walkout over pay
Union chiefs are said to be preparing strike action for British HGV drivers after ministers backed plans to make it more attractive for foreign hauliers to work in the UK.
British businesses are said to be 'appalled' by Government-backed plans to allow overseas drivers make 'unlimited journeys at low rates' to combat shortages and save Christmas.
They say the move risks British labour being 'undercut' by cheaper foreign companies as national union Unite prepares to discuss potential strike action with hauliers, reports The Times.
In desperate efforts to plug the gaps amid a national driver shortage, the government have agreed to a relaxation in 'cabotage' rules - which currently limit EU-based companies to making a maximum of two trips in the UK within a week.
But Rod McKenzie, managing director at the Road Haulage Association, warned ministers would be allowing firms from abroad 'do unlimited work at low rates, undercutting UK hauliers who are facing an acute driver shortage, rising costs and staff wages'.
Sharon Graham, Unite's new leader whose trade body was accused of 'holding Christmas hostage', added that the treatment of British drivers was 'nothing short of a disgrace'.
The news comes just days after thousands of supermarket and delivery drivers were to be consulted over a mass walkout - the largest strike threat of its kind since the notorious Winter of Discontent more than 40 years ago.
The recent supply chain crisis, which many fear will continue to cause empty shelves into the festive season, has given truckers 'power', the union said.
As a result, their representatives are demanding commitments from ministers to provide clean toilets and catering facilities at truck stops as well as a pay rise for veteran drivers, after new starters were offered salaries of £50,000 to get behind the wheel.
Mr McKenzie told BBC R4's Today programme that any agreement to allow foreign firms unlimited access across the UK could 'sabotage' British businesses.
He said: 'I spoke to some of our members last night and they were appalled, ridiculous, pathetic, gobsmacked.
'This is about taking work from British operators and drivers and giving it to Europeans who don’t pay tax here and pay peanuts to their drivers.
'The government has been talking about a high wage, high skill economy and not pulling the level marked uncontrolled immigration and to them this is exactly what it looks like.'
This week, families were warned to start shopping for Christmas now amid fears that supplies of toys, electrical goods and other products will be disrupted by the logjams at UK ports.
Retail leaders say the shortage of HGV drivers to carry loads from docks around the coast is threatening festivities and the wider economy.
Meanwhile, unions are said to be discussing the potential for industrial action. The government has played down the impact of any strike.
Sharon Graham said: 'Britain's drivers kept the nation moving during the worst crisis in living memory. It's time for employers to pay workers a proper rate for the job.
'Enough is enough. Unite will be consulting its members before deciding on the next steps, including exploring the options for industrial action.'
But Transport Secretary Grant Shapps downplayed any threat of strike action looming over the winter period, as MailOnline understands Unite's representation in the haulier industry sits at around 15 per cent of all drivers.
He told the BBC: 'We're not in the 70s where there was a big unionised block of lorry drivers.'
It comes after comments from the head of the British Port Association explained a lack of HGV drivers had caused deliveries to slow down at Britain's busiest ports.
Richard Ballantyne, chief executive of the British Port Association said haulier shortages had meant goods were 'sitting around longer than you expect' in Britain's ports.
He added: 'The lack of haulage isn't stopping ports from doing things, it's just slowing things down at the moment.
'It's a big problem across the board, not just in the container sector as we've seen this week but also the roll-on roll-off - where trailers are dropped at ports and collected by domestic drivers.
'We're now also seeing a bit of an impact in the bulk sector. It's not a major problem at the moment, but it could be, so we're supporting some of the moves government are making to make it easier for people to come in an drive.'
Mr Ballantyne also appeared to back the Government's drive to loosen cabotage restrictions, describing it as 'quite a helpful move'.
He added: 'I know some domestic hauliers in UK are nervous about this, but in terms of having overall resource in Britain, we do like that. Coupled with other factors, immigration visas and the relaxation of driver's hours.
'But it's important to say these are not long term solutions, government and industry need to look at ways to attract new and young people into the sector.'
One in three retailers in Britain are expecting prices to increase over the next three months amid cost pressures from rising transport costs, higher energy prices and ongoing labour shortages.
The British Retail Consortium said there are 'clear signs' the combination of issues are 'starting to filter through to consumer prices', and small retailers across the UK say they are expecting to have to charge more.
But others said they are 'desperately holding off from being a Christmas grinch and keeping everything the same' because they don't want to give shoppers more reasons not to buy in what is already a tough market.
https://archive.is/sHQTd
Prices have been increasing already.
See also -
Is this communism by the backdoor? - Shortage of beef
https://ancient-forums.com/viewtopic.php?p=162287#p162287
There are also more energy companies which are going bust.
Renewable alternative energy - amazing home-made gasifier uses wood pellets to run generator
https://www.bitchute.com/video/0HDy6HE2cJwx