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The boss of Iceland, Richard Walker, warned this morning that Christmas could be effectively 'cancelled' this year after revealing that the supermarket chain has been suffering daily shortages of food and drink products due to a chronic shortage of HGV drivers. And sausage roll giant Greggs told PoliticsHome earlier that several items on its menu containing chicken - including the chicken bake, the chargrill chicken oval bite and other types of chicken-filled baguettes - could be hit by supply chain disruption.
Retail bosses have been warning that the industry faces a shortfall of as many as 90, lorry drivers as the impact of the Covid pandemic and post-Brexit migration rules strangle supply chains and threatens a shortage of popular gifts and staple foods. Mr Allan told the World At One programme: 'We are very short of drivers, it's a combination of many EU drivers having decided to go home and also the ageing age-profile. Normally the supermarket industry would start building stocks from now in readiness for Christmas.
At the moment we're running very hard just to keep on top of the existing demand and there isn't the capacity to build stocks that we'd like to see. Steve Murrells, Co-operative Group chief executive, told The Times that the shortages were 'at a worse level than at any time I have seen' and revealed the company had reduced several ranges on offer in stores. It is also now retraining members of staff to drive lorries, with around 14, European drivers leaving Britain last year and only of them returning.
Experts say the shortage is due to a combination of factors including EU employees returning home after Brexit and Covid restrictions causing the cancellation of 40, HGV tests. They also cited poor wages and the closure of a tax loophole for some drivers. The crisis is also hitting British tourism, as hoteliers and bar owners try to manage a surge in holidaymakers as people opt for vacations at home than abroad, and staff shortages caused by a rising number of Covid infections and a recruitment slump post-Brexit.
Even schools are being warned to stock up on food for hot meals, with Federation of Wholesale Distributors communications chief David Visick warning September is going to be 'incredibly challenging for food distributors who are struggling to find enough delivery drivers'. The supply of popular Christmas products is likely to be hit by domestic labour shortages and issues with global shipping. Pictures posted by Twitter users this week show how Greggs has been suffering from supply chain issues.
Chicken bakes and baguettes are in short supply at Greggs file picture , it was revealed today as the budget bakery chain became the latest major food outlet affected by supply chain disruption caused by Covid and Brexit. Retail bosses yesterday warned the industry faces a shortfall of 90, lorry drivers as a perfect storm of Covid and Brexit strangles supply chains.
Picture: Stock. Steve Murrells, Co-operative Group chief executive, told The Times the shortages were 'at a worse level than at any time I have seen' as other retail bosses warn of a huge shortfall. Picture: Empty shelves in Co-op in July. Richard Walker left , the managing director of Iceland, and Co-op's chief executive Stevel Murrells right have raised the alarm about a supply chain crisis caused by a perfect storm of Covid and Brexit. A lack of lorry drivers and food processors is being partly blamed on the new Brexit visa regime introduced on January 1, which penalises lower-skilled migrants in favour of those with qualifications.
But global factors are relevant too, bosses say, including Chinese port closures and a lack of shipping containers. Nick Allen, chief executive of the British Meat Processors Association, told MailOnline Britain has so far been unable to shake its dependency on EU workers who have been leaving due to the pandemic. The supply of new workers is also being held back by stricter visa rules introduced on January 1.
The most common complaint among UK retailers and food producers is the shortage of lorry drivers, which the Road Haulage Association currently puts at , Thousands of prospective drivers are waiting for their HGV tests due to a backlog caused by lockdown, while many existing ones have left the UK after Brexit or to be back with their families during Covid. Importers are also suffering a financial hit, with dramatically rising transport costs caused by a global lack of shipping containers and a slowdown in freight movements resulting from port closures.
Chinese authorities recently shut Ningbo-Zhoushan port, which is one of the world's largest container terminals, due to a Covid outbreak.
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