Following news that the UK reported a shortage of CO2, two major suppliers closed their doors and manufacturers were forced to look for smaller CO2 suppliers across the EU; Ramsey Baghdadi, consumer analyst at GlobalData, a leading data and analytics company, offers his view: “The CO2 crisis is yet another result of manufacturers not reacting quickly enough to the supply chain challenges that have been unfolding for months. Meat manufacturers will simply have to accept that short-term supply chain challenges are inevitable – especially in the run up to Christmas. This is particularly so for poultry and pork manufacturers, which use CO2 as part of processing. However, it is imperative that strategies are put in place to minimize the impact on the consumer to avoid disgruntled Christmas customers.
“Any inflation in meat prices will hit people hard. The production delays may mean costlier Christmas dinners for a notable proportion (22%) of Brits that buy premium meat. However, almost half (46%) of these consumers are concerned about their personal financial situation and may simply turn to cheaper brands to seek more affordable options. Therefore, manufacturers will need to think creatively in how they can keep prices down.
“Similarly to the situation happening in the UK foodservice industry, it is vital for meat manufacturers to introduce more transparent approaches – such as blockchain – to its supply chain. In the long term, this will allow manufacturers to monitor the entire supply chain more closely and accommodate to changes more quickly.”